BDSwiss Group has responded to yesterday’s FCA announcement that it is stopping the CySEC licensed broker from offering CFDs to UK investors.
August 6, 2021, | AtoZ Markets – The UK Financial Conduct Authority (FCA) on Thursday stopped Cypriot-based broker BDSwiss Holding Plc and all other entities under the BDSwiss Group from offering contracts for differences (CFDs) to UK clients.
The UK regulator “identified serious concerns with the sales and marketing practices of the BDSwiss Group, including the use of misleading financial promotions which made unrealistic claims about the likely returns, failed to state clearly the nature of the financial instruments being marketed and failed to outline the risks involved in trading CFDs”.
BDSwiss' response to the FCA announcement
Responding to the FCA’s notice, BDSwiss told AtoZMarkets that they were not warned about the announcement nor were they informed of specific client complaints which has not allowed them to fix the issues before FCA’s decision. But, now it is ‘in close communication’ with the regulator.
The Group confirmed it has suspended all marketing activities towards UK customers in mid-July. The company gave clients notice and is currently working to submit a revised written representation statement to the regulator by 12 August 2021.
BDSwiss highlighted that it has put in place marketing guidelines and code of conduct for its Affiliates and Introducing Brokers to follow, however, it has become aware that “an isolated group of Partners may have intentionally breached our agreements when it comes to their communications.” The company confirmed that its agreement with these individuals has been terminated and has launched an internal investigation to ensure its guidelines are followed in the future by its global network of partners.
In its response, BDSwiss stated:
With regards to the FCA announcement and the use of our group website domain, we would like to clarify that all visitors and potential clients are presented with all brand entities and regulators, they are prompted to register under their own jurisdiction, and are even explicitly warned when attempting to register under a different jurisdiction.
BDSwiss Group website maintains clear risk warnings
What is more, the BDSwiss group website has always maintained clear risk warnings with regards to the risks associated with trading leveraged products under all its entities and jurisdictions.
The company added:
At BDSwiss, we always emphasize transparency and regulation and while we offer leveraged products, we have always clearly communicated all risks involved to our clients. While certain actions from affiliates conflicted with our client-centric approach which focuses more on transparency, education, and support.
BDSwiss also revealed it has conducted an independent customer survey by Edelman, a third-party data and intelligence company. The survey’s focus was the Group’s active UK clients in late 2020. The findings indicated that 70% of the UK-based clients of the company at the time reported high satisfaction with the services provided by BDSwiss.
The company stated that it is determined to further improve its partnership programmes, products, and services. BDSwiss confirmed it is in constant communication with the FCA and the CySEC in order to find a resolution.
The company said:
We hope that we can welcome UK clients to our platforms in the near future upon the acquisition of an FCA license.
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