CFD broker Plus500 Ltd (LON:PLUS) has announced that it has reached a settlement with Belgium financial regulator FSMA, in which it will pay the regulator €550,000.
The settlement came after several months of discussions between Plus500 and the FSMA. Belgium authorities claimed that Plus500 had contravened its ban on offering leveraged trading products in the country, while Plus500 denied that it had done so. The settlement put the matter behind both entities, with Plus500 not admitting any wrongdoing as part of the settlement.
Belgium has taken the most drastic position of all EU countries in banning leveraged trading products. In France and The Netherlands a Forex ad ban was recently imposed covering most leveraged trading products. In the UK and Cyprus the regulators have put limitations on leverage which retail traders can use, plus a ban on offering deposit bonuses. Germany’s BaFin imposed negative balance protection on leveraged trading accounts.
The full press release issued on the matter by Plus500 reads as follows:
25 April 2017
Plus500 Ltd.
(“Plus500” or “the Company”)
FSMA Update re Belgium
Plus500, a leading online service provider for retail customers to trade CFD, announces it has reached a settlement agreement with the Belgium Financial Services and Markets Authority (“FSMA”) for the amount of EUR 550.000. The settlement was reached in the context of the public offering of investment instruments, including CFDs as offered by the Company, in Belgium.
The settlement does not amount to an admission of guilt or non-compliance by Plus500. Despite believing that it had introduced all necessary procedures to comply with the applicable legislation, Plus500 felt a settlement agreement was appropriate to respect the authority of FSMA and to reach a swift and final clearance of the jurisdictional process.
The Company reaffirms that it does not have any regulatory restrictions in any of the Group’s regulated markets.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Elad Even-Chen, Chief Financial Officer.