Is Exceed Capital scam or reliable? Today, the Finansinspektionen announced that, at its meeting held on June 2, 2020, it decided to withdraw the authorization of the firm.
June 3 2020 | AtoZ Markets –The Swedish Financial Supervisory Authority, the Finansinspektionen (FI) has withdrawn the authorization of Exceed Capital Sverige AB. Under FI’s decision, the company loses all its authorizations and may no longer conduct regulated business.
The sanction decision was made by FI’s Board of Directors at an extraordinary meeting on Tuesday.
Why Finansinspektionen withdrew the authorization of Exceed Capital?
Exceed is an investment firm whose operations consist primarily of consumer advice on financial instruments through both own advisors and tied agents. The company has around 10,000 customers and approximately 40 employees.
FI’s investigation reveals that Exceed has continuously breached key customer protection rules within securities legislation. For example, the company has advised customers, who are often older, to invest their savings in very complex and risky products without ensuring that they have had the necessary knowledge about the large risks.
Another example is that the information that Exceed provided to its customers regarding fees was directly misleading.
Consequently, Exceed has not demonstrated the duty of care towards its customers that is required by law. The company also hindered FI’s work during the investigation.
As a result of the decision, Exceed may no longer offer investment advice and the regulated business activities will be discontinued in an orderly manner. All customers will be contacted and receive more information from Exceed about how the winding-up process will take place.
The business must be wound up no later than September 2, 2020.
Finansinspektionen has the power to fine
Back in 2008, the Swedish Government extended the powers of Finansinspektionen over brokerage firms and gave it the ability to issue fines of up to SEK 50m (€5.4m).
The Bill provides the Finansinspektionen greater tools to sanction these companies if they fail to follow the regulations.
The Finansinspektionen only has the power at present to withdraw a company's permit or to issue a warning. However, the powers allow the Authority to issue fines of between SEK 5,000 and SEK 50m, depending on the type of rule breach.
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