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Spot Capital Markets penalized by CySEC
CySEC (Cyprus Securities and Exchange Commission) announced the imposition of a fine on Spot Capital Markets. A broker focusing his offer primarily on binary options will be forced to pay as much as possible 50 000 EUR for offenses committed by JanNUMX in January-June.
Pleas against SCM
The main reason for CySEC imposing the aforementioned reprimand are irregularities in customer service, i.e. inadequate communication with clients that could mislead them (30 000 EUR fines), as well as the broker's investment advisory services without appropriate approvals (20 000 EUR fine). The information from the regulator shows that the company, its employees and third parties cooperating with the broker (providing call-center services) did not act in a reliable and professional manner, which had a negative impact on the interests of clients. The broker is also on the KNF's list of warnings from mid-November 2017, about which we informed in a separate article.
Spot Capital Marketsto which brands such as BullBinary, CFDHouse, CardinalMarkets or BinaryIndex, she allegedly persuaded clients to invest with a guarantee of certain profits, encouraging them to make regular, ever larger deposits. Despite the penalty imposed and the presence of the KNF on the black list, the company is still functioning and has a valid CySEC license. It is, however, worth considering before we decide to pay a deposit to SCM.
CySEC in an unbroken offensive
CySEC has intensified its control activities for the forex brokers and binary options subject to it for about three years. The growing number of complaints from injured traders on unethically operating entities strongly undermined the trust in local regulations. This forced the supervisor to quickly take restrictive steps and, as a consequence, impose many financial penalties. We have recently informed about punishing an increasingly popular brand - UFX.com.
The Union is watching everything. There is a growing risk that ESMA will in the near future completely prohibit offering investments in binary options within the European Union. Such steps have already been taken, for example, by France and Israel.
