LeapRate Exclusive… LeapRate has learned that Russia based Retail FX broker Alpari has initiated its return to the EU market, receiving an investment brokerage license from Latvia’s financial regulator FKTK.
Alpari has established Latvian subsidiary Alpari Europe IBS AS, which will be part of the international financial brand Alpari. The FKTK license was received earlier this week, on October 24, 2017, after Alpari made an initial application to the regulator in December 2016.
The license allows Alpari Europe to provide services in the territory of Latvia, including accepting and servicing customers from other countries. In the future, the company may initiate activities in other EU countries, as allowed by EU MiFID passporting rules.
In accordance with the issued permit, Alpari Europe will carry out investment brokerage activities with the right to conduct transactions with financial instruments on its own behalf and execute orders with customers. The company will also provide additional financial services, including research and analysis of financial markets in the format of providing general recommendations.
At the moment the company is preparing to launch an operating activity that will meet the requirements of the European and Latvian legislation, and in particular the new pan-European law MiFID II and MiFIR, which will enter into force on January 3, 2018. Accordingly, Alpari Europe will be able to take in its first clients early next year. In the meantime, Alpari Europe will focus on strengthening its management team and preparing an office in the Latvian capital of Riga to work with clients.
Alpari is controlled by Russian businessman Andrey Dashin. Mr. Dashin is also the controlling shareholder of CySEC regulated Retail FX broker FXTM, also known as ForexTime.
As noted above, this marks a return of the Alpari group to the EU, following the 2015 bankruptcy of London based, FCA regulated Alpari UK. Alpari UK filed for bankruptcy protection following heavy losses taken in the January 2015 spike in the value of the Swiss Franc.
Late last year Alpari became just the sixth retail forex broker to get a Bank of Russia FX license.