January 08, 2019 | AtoZ Markets - The Israeli Securities Authority (ISA) has fined today the retail broker ATrade a NIS 576,000 ($153,464).
The fine, which the regulator imposed on the company, that is the Israeli branch of AvaTrade, was said to have come as a result of two breaches the company made recently, as per the regulator’s statement, where the latter explained that the company referred to seems to have not implemented modifications in its business line, that had been requested apparently.
“ATrade failed to make adjustments and controls in accordance with the law and failed to receive a special report from the auditor.”, said the regulator in its statement.
The regulator did leave something of a cryptic hint as to what the fine pertained to in an additional comment tacked on to the end of its statement.
The broker was punished before for a “misleading marketing” campaign!
The statement’s accent, even though it was not very straightforward, seemed to have been issued based on consumer protection concerns in the forex market.
“In imposing this financial sanction on the ATrade, the authority emphasizes the importance of regulation in the foreign exchange market, including compliance with all the obligations related to the proper maintenance of the customers’ money.”, the regulator specified in its statement.
In spite of the fine it received today, ATrade is one of the first companies that obtained a licence from the regulator once the latter started controlling the brokerage market, where after the step, the company was said to have started advertising its services standing on a solid ground, making use of the authorisation they received, which the regulator hinted it would prevent traders from losing their cash.
The fine the Israeli financial regulator has imposed on ATrade is not the first one the company receives, where the latter was fined as well in May 2017, for one of its marketing campaigns that was said to be “misleading”, for which had to pay NIS 150,000 ($40,500) in fine.
That period in which the company was fined in 2017 was the era where similar firms used to run unlicensed brokers, as the Israeli forex regulation body was still newly-started in that time.