Hungarian FSA suspends iForex's license, fines it $100,000

Apparently the HFSA (Hungarian FSA) issued the following statement regarding iForex - a pretty large retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker operating in Europe and Middle East regions. After a thorough examination iForex was found violating many rules governing its operations. iForex's forex license was then suspended for six months and it was fined $100k. Full detail of the case (in Hungarian) is found here.

Excuse Google's translation:

The Financial Supervisory Authority (FSA) after a thorough examination of 20 million to pay the fine iFOREX Investment Services Zrt (the Company), and six-month suspended the company's online foreign exchange trading business license.

The FSA in January 2011 the Company conducted a comprehensive study, which concluded that the Company's foreign exchange Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term via the internet service provided in many cases violated the laws governing the operation.

The FSA decided that the Company's major customer has infringed the rules of protection that is not given full information to clients of the service characteristics of the risks, and other service companies involved in the implementation of the role. The Company's business license was suspended in view of the Company currently does not have the level of capital required by the rules of operation and technical conditions. If the Company during the period of suspension of the FSA to confirm that the study classified by insufficient material and technical conditions established and functioning before the expiry of the six-month suspension is continued.

The Company during the period of suspension of the license agreement can not enter into new customers, existing customers may not incur new obligations against the resulting contracts, but must meet its obligations, the clients open positions of the suspension is not affected.

The decision to prevent money laundering legislation is also found violations, it required the company to identify customers in accordance with legislation.

The FSA to eliminate the Company's recovery plan and a plan for internal audit actions taken pursuant to the reporting obligations imposed. In addition, each month, the company must give notice to the Supervisory Authority for major customer data.

2011th July 8, Budapest

Financial Supervisory Authority

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