HFT Brokers receives 1 one million zlotys from the PFSA

Almost a year has passed since announcement of termination on the Forex market by Dom Maklerski HFT Brokers. However, as it turned out, this was only the beginning of serious problems for the company. The most recent of these is the financial penalty imposed by the Polish Financial Supervision Authority in the amount of one million zlotys.

Nail behind the nail to the HFT Brokers coffin

19 began on October 2016 when HFT announced the termination of the intermediation services in derivative trading. Another bad news was the suspension of the brokerage house license in March this year was definitely withdrawn at the end of April. Thus, the company was to end its activities on June 26. Along the way, the owner of the HFT Brokers brand - HFT Group SA - i.e. a company listed on New Connect, was suspended on May 17. The reason was the failure to submit the quarterly report for Q2017 XNUMX. Yesterday, another blow was struck. The announcement reads:

The Management Board of HFT Group SA with its seat in Warsaw ("Issuer") informs that it has obtained information from the Representative of the Issuer's Subsidiary, i.e. HFT Brokers Dom Maklerski SA with its seat in Warsaw ("Subsidiary") on The Polish Financial Supervision Authority ("KNF"), by decision of Ref. No. L.dz. DPP / WPAII / 476/114/18/2016 / 2017.AS (the "Decision") of a fine of PLN 1.000.000,00 for a material violation of the law, i.e .:
1). § 9 clause 1 of the Regulation of the Minister of Finance of September 24, 2012 on the procedure and conditions of conduct of investment firms, banks referred to in Art. 70 sec. 2. The Act on Trading in Financial Instruments and Custodian Banks ("Regulation on the procedure and conditions"),
2). §. 9 sec. 2 point 3 Regulation on the mode and conditions,
3). § 10, para. 2 point 12. And parish 10 sec. 3 point 1 Regulation on the mode and conditions,
4). § 8, para. 1 and 2 Regulation on the mode and conditions.

The decision of the Polish Financial Supervision Authority is final.

Financial penalties with a total amount of PLN 1 are the result of, inter alia, unreliable and misleading information provided to clients (also related to charged fees). In its justification, the Polish Financial Supervision Authority also points to a breach of the principles of fairness and professionalism as an investment company.

"What if ...?"

Loudly on the problems of HFT Brokers, it began to take place at the moment of entry into force new KNF guidelines in September 2016. As a result of their introduction, the level of capital collateral has changed (a deposit reserve has been required several times higher), which was also supposed to be the main reason for the company's withdrawal from the forex business. The guidelines also caused hiccups to other Forex players - DM BZ WBK and DM PKO BP - for whom this business was also supposed to stop simply paying off. However, it is HFT as the only broker, and thus the smallest entity and once a star of the Polish Forex scene, that suffered the most severe consequences of the changes.

The KNF's decision to impose a fine on HFT Brokers