Spain's National Securities Market Authority (CNMV) has issued new warnings about eight financial companies promoting investment services without proper registration. These companies lack a license from the CNMV to operate in Spain legally.
Spanish CNMV flags 8 unregistered Forex and CFD entities
The CNMV stated that the companies mentioned in the latest warning are not registered in Spain to provide financial services or investment activities. Under local regulations, companies must register with a market watchdog before operating legally in the country.
The following companies were named in the CNMV warning:
- Fame-traders.com
- Globefx.io (Globe Fx)
- protrade24.net (Protrade24)
- Tradingero.es (Tradingero)
- assetivax.com (assetivax)
- aifmd.info, aifmd.xyz (Aifmd)
- Smart-limited-group.com (Smart Group Limited)
- Capitalmgmgroup.com, Capitalmgm.com (Capitalmgm)
The above list includes a mix of companies that provide access to trading platforms and automated bots targeting forex and cryptocurrency investors.
Warnings from #CNMV In unregistered institutions: https://t.co/5OrAZfgBVE
– CNMV (@CNMV_MEDIOS) June 10, 2024
The Spanish regulatory authority is among the most active on the European market in the field of reporting entities operating illegally. In recent months, it has warned against cloning popular investment firms and drawn attention to unlicensed activity by companies in the Forex and CFD sector.
In the latest move, it warned against Linq Capital, a brokerage that has been under the scrutiny of European regulators for several months. The German Financial Supervision Authority, among others, had warned against its activities In February.
Spain recently expanded its restrictions on the marketing, distribution and sale of CFDs, banning practices targeting retail clients and the general public. The European authorities considered these measures justified and proportionate, and aimed at enhancing investor protection in the face of aggressive advertising campaigns carried out by some brokers.
This article was written by Damian Schmil at www.financemagnates.com.