One of the largest binary options brokers 24Option was banned from operating in France. Why did the AMF Ban 24Option? What is next for the brokerage?
1 August, AtoZForex – Autorité des Marchés Financiers (AMF) is an independent French regulator which aims to safeguard financial products and investments, make sure that investors receive material information and safeguard and maintain orderly financial markets. Recently the news came in about another big broker being blacklisted by the watchdog. Why did the AMF Ban 24Option?
What is 24Option?
24Option is one of the largest binary brokers in the world. The firm was banned by the AMF from operating in France. French citizens can no longer use services provided by the brokerage. Yesterday, the official statement announcing the news of off-boarding French investors was sent to the affiliates of the company.
In its statement from July 29, the French watchdog said that 24Option is not being able to comply with specific “professional obligations”. The regulator ordered 24Option to abort its operations in France, stop soliciting and accepting new French customers and put existing customers on withdrawal and liquidity mode only. The AMF ban takes effect today, August 2016.
Why did the AMF Ban 24Option?
According to the regulator, the decision to ban 24Option from operating in France was taken pursuant to Article 62 of MiFID. The AMF stated in its official announcement that the parent company of the broker, Rodeler Limited provider did not comply in France with its certain obligations. Those included providing correct information, acting fairly and honestly in the best interest of its clients.
The brokerage issued an announcement addressing its clients and affiliates. The broker elaborated on the AMF ban 24Option as following:
“<…> At 24Option we fully stick to the strict European financial regulation. As such, in order to comply with AMF, we have been asked to block all French traffic to the site at this time. We are working with the regulator to solve this situation as soon as possible.”
The AtoZForex Team has reached out to the 24Option for the comments on the case. The request is still pending.
See also: AMF blacklists 16 Binary Options websites
Think we missed something? Let us know in the comment section below!