RoboMarkets,
a forex and contracts for difference (CFD) broker regulated by the Cyprus
Securities and Exchange Commission (CySEC), has been prohibited by the
securities regulator from offering non-monetary rewards such as race tickets
and “branded merchandise” to its
retail customers. CySEC announced the decision today (Wednesday), noting that
its Board reached the decision earlier in March.
According
to the Cypriot financial watchdog, RoboMarkets through its website and social
media platforms offered such non-monetary rewards to its customers. However, these
“activities” do not comply with the provisions of the European
Union’s Markets in Financial Instruments Regulation (MiFIR) on protecting
investors and the financial markets from harm, CySEC noted in a statement.
Furthermore,
the regulator claimed that RoboMarkets through the practice sought to
circumvent a section of the
European Securities and Markets Authority’s (ESMA) directive on product
intervention. The intervention seeks to
protect investors against harm and prevent the destabilization
of the financial market.
It appears
that the Cypriot regulator sees RoboMarket’s offering of race tickets and
branded merchandise as a technique to entice customers to trade CFDs. The
derivative instruments, which allow investors to bet on the future price of an
underlying asset, such as a stock or currency, are considered highly
risky.
As of press
time, RoboMarkets has not responded to Finance Magnates’ request for a comment
on the order.
MetaQuotes caps product activation; Swissquote’s portfolios; read today’s news nuggets.
RoboMarkets,
a forex and contracts for difference (CFD) broker regulated by the Cyprus
Securities and Exchange Commission (CySEC), has been prohibited by the
securities regulator from offering non-monetary rewards such as race tickets
and “branded merchandise” to its
retail customers. CySEC announced the decision today (Wednesday), noting that
its Board reached the decision earlier in March.
According
to the Cypriot financial watchdog, RoboMarkets through its website and social
media platforms offered such non-monetary rewards to its customers. However, these
“activities” do not comply with the provisions of the European
Union’s Markets in Financial Instruments Regulation (MiFIR) on protecting
investors and the financial markets from harm, CySEC noted in a statement.
Furthermore,
the regulator claimed that RoboMarkets through the practice sought to
circumvent a section of the
European Securities and Markets Authority’s (ESMA) directive on product
intervention. The intervention seeks to
protect investors against harm and prevent the destabilization
of the financial market.
It appears
that the Cypriot regulator sees RoboMarket’s offering of race tickets and
branded merchandise as a technique to entice customers to trade CFDs. The
derivative instruments, which allow investors to bet on the future price of an
underlying asset, such as a stock or currency, are considered highly
risky.
As of press
time, RoboMarkets has not responded to Finance Magnates’ request for a comment
on the order.
MetaQuotes caps product activation; Swissquote’s portfolios; read today’s news nuggets.
