CMB fines Venbey Yatırım over $113,000 due to few regulatory breaches, following the news of the armed clients storming the broker's offices earlier. Is this just a beginning of the penalty wave for the Forex broker?
19 October, AtoZForex – Following the news about the Turkish broker Venbey Yatırım and the armed clients of the broker, storming its offices in Turkey earlier this month, new details are coming in, as the Capital Markets Board of Turkey (CMB) fines Venbey Yatırım.
What are the reasons behind the penalty?
Turkish financial regulator has informed the public that it has fined Venbey Yatırım after it has performed an on-site inspection of the company’s offices and evaluated firm’s operations.
The Forex broker Venbey Yatırım as became subject to two penalties, which when combined are accounting for over $113,000. First fine of TRY 325,617 was put on the Forex broker for incorrect reporting of client assets in regards to the calculation of capital adequacy ratio. The second part of the $113,000 fine is accounting for TRY 26,049, as Venbey Yatırım was penalized for its failure to update its margins at Takasbank.
According to the regulatory framework by Capital Markets Board in Turkey, all client funds should be held in Takasbank, which is a governmental bank. In case client loses funds, the broker can withdraw it from Takasbank, similarly, if the client makes money, the broker should update the margins at Takasbank.
Is it just a beginning?
The CEO of boutique software and solution provider Meta Technologies, Hüseyin Gürsöz, has commented, as the CMB fines Venbey Yatırım:
“The Capital Market Boards of Turkey is supervising some FX brokers since the volatility of the Turkish Lira hit the market. There are big losses on some brokers’ side and they are having trouble to reach capital adequacy ratio. Fines started with Venbey Yatırım and we can expect more fines regarding capital adequacy ratio.”
Mr. Gürsöz believes that the penalty by the Turkish financial watchdog is just the first move in the approaching series of fines.
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