IDM introduces the standard of customer verification experienced in the Forex / CFD market

The Chamber of Brokerage Houses (IDM) has announced the introduction of a uniform standard for verifying the knowledge of a client experienced on the Forex / CFD market for Polish brokerage houses, their members. Following the introduction of a new categorization by the Polish Financial Supervision Authority in August (Experienced customer and the possibility of obtaining 1 leverage: 100), which did not fully specify the issues related to the verification procedure, a uniform standard testing traders' knowledge has become extremely needed.

Be sure to read: We check the procedure of switching to an experienced customer

IDM members should adapt

Members of IDM are required to conduct training for a client applying for the status of an experienced client, according to the scope of knowledge specified by the Chamber divided into five thematic blocks, and to conduct an examination completing the training according to the rules described in the standard. Such a process, completed with a positive result of the text, is an element of customer verification when changing his status to an experienced customer. The training itself should last at least 50 hours, which is regulated by the August 2 guidelines issued by the KNF.

Waldemar Markiewicz, President of the Chamber of Brokerage Houses:

“The latest solutions introduced on the domestic CFD market meet the needs of protecting individual investors and the challenges of the domestic industry. We hope that, above all, it will increase the safety of clients and their trust in domestic brokerage houses under the supervision of the Polish Financial Supervision Authority, and also reduce the outflow of clients to companies outside the European Union and improve the competitiveness of the domestic brokerage house industry. "

According to IDM, all entities operating on the Polish Forex / CFD market should apply a uniform standard in the verification procedure of changing the client's classification to "experienced". Therefore, the Chamber prepared the substantive scope of the verification test along with questions and obliged its members to use the same verification procedure. According to the Chamber, for the benefit of domestic customers, the implementation of such a unified standard on the CFD market for all companies operating in Poland is needed.

This solution aims to protect retail clients while maintaining the competitiveness of the domestic brokerage industry. The standard was prepared by IDM experts and approved by the Council of Brokerage Houses. The Chamber also forwarded the document to the Polish Financial Supervision Authority.

President Markiewicz adds:

“In order to protect clients and increase trust in the market and Polish brokerage houses, the Chamber decided to implement among its members a uniform standard of retail client experience verification. We want other entities offering services to Polish clients on the CFD market also to comply with the Chamber's standards, so that the retail client has the best protection ”.

About the Chamber of Brokerage Houses

IDM is the largest independent local government organization of the employers' home and brokerage offices in Poland, associating 20 members who have over 93% share of local WSE members in trading shares, over 94% share in trading bonds and over 94% share in trading futures.