IG Markets fined 500 000 EUR

IG Markets Ltd., a British Forex / CFD broker belonging to the IG Group Holdings PLC group, was fined in the amount of 500 000 EUR by AMF, the French financial market regulator. This is the result of an investigation launched in June 2015, which was carried out in the French branch of the company.

Reasons for cutting

The French counterpart of the Polish Financial Supervision Authority noticed violations of the regulations of the local branch, which were to mislead clients in terms of investing in CFD instruments and binary options. Furthermore, AMF points out that the IG Markets division did not perform its duties with due diligence. As a result, the accusations also apply to presenting unqualified employees as specialists - financial analysts; failure to verify the level of knowledge and experience of customers who were offered services; insufficient exposure of the source of investment recommendations.

The latest accusation stems from publications on YouTube that contained recommendations. However, the AMF found that only 2 of the 20 videos posted indicated their source. In addition, selected materials contained photos of IG Markets employees with fake signatures "IG analyst in Paris", while none of them had ever held such a position.

IG refutes the allegations. According to the broker's representatives, only some of the recommendations did not contain information about their source and it was a small part of the total. He also explained that he remedied the violation very quickly immediately after the investigation was completed and that he had increased control over all divisions. As for the second part of the allegations, IG explained that it had "inadvertently" signed 5 of its employees as financial analysts and that it was not intended to mislead its clients. The reason for the "misunderstanding" was the discrepancy in the definition of the said position by IG Markets in relation to the definition of the regulator.

About IG Markets

IG Group is one of the largest brokers with a physical presence in 14 countries around the world. Its shares are listed on the London Stock Exchange and revenues in 2017 were 518,7 million GBP. Thus, it can be assumed that the fine of EUR 0,5 million will not be particularly felt by him. However, there remains a distaste and a deterioration in the confidence of French traders.