The Klimex Capital Markets broker ceases to operate after the KNF warns

Broker from Australia Forex / CFD, Klimex Capital Markets, announced the planned termination of operations, which is expected to become reality on December 16, 2022.

The message reads:

We are very sorry to announce that Klimex Capital Markets will cease operations on December 16, 2022.

We do not currently accept new / additional accounts and also will not accept deposits to accounts without open positions. We will accept deposits to accounts with open positions until November 30, 2022. After this time, we will no longer accept any deposits.

From December 1, 2022, clients will not be able to open new positions, but only close their existing open positions. We will start the process of closing open positions in December and will complete this process by December 16, 2022. We strongly advise clients to initiate account liquidation and withdraw funds before this time to avoid automatic closing in December.

In the sent mailing, it was not specified whether it was a complete cessation of activities or, more likely, only the termination of providing services to Polish customers. The broker's website has been available in Polish for years, but the company itself was not listed in any European register and had no KNF notification. And here we come to the heart of the matter.

Klimex on the KNF's list of warnings

October 26, 2022 Polish Financial Supervision Authority informed about adding the entity to the list of warnings Klimex Capital Markets using the website www.klimexcm.com. The second entity was also indicated in the same position - 3P Consulting Group sp. Z o. O based in Piotrków Trybunalski of the National Court Register, i.e. a company belonging to Kamil Partyka, one of the people who once formed a very popular training group - Fractal Trader. Currently, Kamil Partyka conducts training in broadly understood finance under the aforementioned activity.

The KNF announcement does not explain in any way how the two companies are related and why they were placed as one item on the list of warnings. However, it can be assumed that it was the cooperation of both entities that led to the current situation. On the website of the Polish regulator, we read that the reason for inclusion on the list of warnings is the notification of suspicion of committing a crime under Art. 178 the Act on Trading in Financial Instruments (conducting activities in the field of trading in financial instruments without the required permit or authorization), and the proceedings are conducted by the District Prosecutor's Office in Piotrków Trybunalski. The case is serious because violation of the aforementioned article entails a fine of up to PLN 5 million.

Article 178 of the Act on Trading in Financial Instruments:

Anyone who conducts business in the field of trading in financial instruments without the required permit or authorization contained in separate regulations, or not being authorized to do so otherwise, shall be subject to a fine of up to PLN 5.

The funds of Klimex clients will be paid out

In the rest of the message sent by the broker, we read:

Withdrawals from real accounts can be ordered after logging in to our website https://myaccount.klimexcm.com/login in the Funds> Withdraw Funds tab, where, after selecting a real account and entering the withdrawal amount, the system will ask on the next page to approve the card withdrawal and / or by bank transfer, depending on how the real accounts were topped up. If you have several accounts in the same currency, you can transfer funds to one account in the Funds> Transfer between accounts tab before requesting a withdrawal.

Therefore, it can be assumed that clients' funds are safe and should be deposited in their accounts after an appropriate instruction has been given or when the termination of business becomes a fact.