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Belgian regulator in conflict with Plus500
FSMA, the institution that oversees the Belgian financial market, has published a statement regarding the Plus500 broker. What is it about? Let's start from the beginning. Plus500 was fined 550 000 EUR (it seems a lot but considering that the company listed on the London Stock Exchange has a capitalization of over 500 million, no longer 🙂). Conflict concerns CFD instruments and submitting relevant documents.
One of the consequences of the punishment is also the necessity to publish relevant information about the situation. This message, as you might expect, was short and vague. A few hours after he saw the daylight, FSMA released his own statement revealing more details.
Read: Review of the Plus500 transaction platform
FSMA informs ...
The statement by FSMA Plus 500 (Plus 500 CY Ltd and Plus 500 UK Ltd) made it clear that the broker did not provide the CFD prospectus, which is necessary to define the characteristics of the financial instruments offered to Belgian clients, on the basis of which the risk is determined. Any such prospectus must be approved by the regulator and before it is offered to Belgian residents.
Consequences
As a result of the lack of submitted documents, a fine of 550 000 EUR was imposed, an appropriate message was to appear on the Plus 500 site, and the broker must contact Belgian investors and offer them a free termination of the contract. Moreover, the website www.plus500.be has to be closed, and on the other websites belonging to the broker, information must be provided that the instruments offered by the broker are not available to the residents of Belgium.
FSMA frightens Forex brokers
The Belgian regulator is one of the first overseers who even declared war on risky CFD instruments on which the Forex market is based (read: Belgium prohibits forex trading). The total ban has already been applied to binary options, and further restrictions are planned. The cold water bucket fell on many brokers present on the local market (read: 19 brokers goes to the Belgian list of warnings).
