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Kristina Frunze

14 November 2017

Regulation Forex Announcements

Polish Authorities Look Into XTB Client Infringements Fraud


Following a lengthy investigation, Polish Authorities determined XTB Client Infringements Fraud. According to the officials, the brokerage has been acting at a client disadvantage. Is it true? 

14 November, AtoZForex One of the modern financial market's participants, specifically Polish broker XTB, has appeared under the spotlight of the local regulators. In fact, according to the Polish financial regulatory bodies, XTB has been accused of more than a dozen of client infringements.

Polish Authorities Look Into XTB Client Infringements Fraud

In fact, the regulator states that the client infringements are totaling a big sum – millions of dollars. The regulatory crackdown has sent XTB’s shares way down, with its share prices initially dropping by 35%. As of now, the prices are back in green.

Yet, yesterday, Polish stock exchange has taken steps to suspend trading, according to the local reports.

Following on this, the initial investigation into XTB dealings was carried out by the Polish Financial Supervision Authority (KNF) and the prosecutor’s office. Polish officials have concluded that the brokerage has been fraudulently engaging in a series of client infringements to the disadvantage of its client base.

Are XTB Clients at Risk?

According to the Polish Financial Supervision Authority, the brokerage has engaged in the client infringements totaling in the range of PLN 8 million ($2.2 million) to PLN 23.5 million ($6.5 million).

We have reached out to the representatives of the firm. It appears that XTB denied allegations:

“We do not agree with the objections by Polish Financial Supervision Authority (KNF). Since that control, we have submitted to KNF extensive substantive and legal objections as well as detailed analyses, pointing the remarks in the audit protocol are groundless. We have implemented all the recommendations of the Commission immediately, upholding in full our objections to the KNF audit protocol at the same time.”

As a matter of fact, such news comes as a surprise for the industry. Earlier this year, the Polish brokerage has put substantial effort into safeguarding its clientele with a negative balance protection. Moreover, the firm has been in a good position, considering its great Q3 financial results.

Think we missed something? Let us know in the comments section below.


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