Just recently 24Option was banned from operating in France. This time, the brokerage firm is fined by the Belgian watchdog for non-compliance. Why did FSMA fine 24Option €140,000?
16 August, AtoZForex – The Belgian Financial Services and Markets Authority (FSMA) passed the regulation according to which the firms have to present certain published materials before soliciting the clients. Finding the breach of this regulation by the broker, FSMA fines 24Option €140,000.
The Belgian watchdog’s move follows the French regulator’s ban on 24Option for the failure to comply with certain professional obligations. The violations included failure to provide correct information, acting honestly and fairly in the best interest of the customers. The watchdog ordered 24Option to abort its operations in France. The broker had to stop soliciting and accepting new French clients. The existing clients were put on liquidity or withdrawal modes only.
See also: Why did AMF Ban 24Option?
FSMA fines 24Option €140,000: details
The recent regulation from FSMA states that even being under EU license passporting rules, any public company who offers investment services in Belgium is obliged to publish a prospectus. The prospectus should contain information about the nature of offered instruments, the issuer and the risks associated with this type of investment. Moreover, the regulator insists: all documents and advertisement materials related to the public offer of any investment services and instruments in Belgium have to be approved by the FSMA before being released.
The regulator found out that 24Option offered its financial service (binary options) without publishing aforementioned prospectus with necessary information. Also, the broker did not submit advertising and other materials to the watchdog. Therefore FSMA fines 24Option €140,000 and expects the brokerage firm to contact all of its Belgian clients. This should be done to offer them a possibility to terminate their contracts with an opportunity to reimburse their balances at no charge.
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