Spain's National Securities Market Commission (CNMV) has issued new warnings regarding 14 financial companies that are promoting investment services without proper registration. These unregistered firms lack authorization from the CNMV to operate in Spain legally.
CNMV Warns Investors of 14 Unregistered Financial Firms
The CNMV stated that companies mentioned in the newest warning are not registered in Spain to provide financial services or investment activities. Under local regulations, firms must register with the market watchdog before legally operating in the country.
The following companies were named in the CNMV warning:
- premiumtrade247.com (PremiumTrade247 LTD)
- byalpha.org (Compic Solutions LTD)
- akselinvest.pro (AKSEL INVEST PRO)
- evallvellc.com (EvallVellc)
- xtreamforex.com (Xtream Markets)
- nordequity.com (Sinvara LLC)
- bdm-investments.uk (BDM INVESTMENTS)
- profinancetrade.com (Profinancetrade LTD)
- imperialtrade.net IMPERIALTRADE)
- ontradepro.com (ONE TRADE PRO)
- uptowns-finance.com (UP-townfinance LTD)
- crownenergyinvestment.com (CROWN ENERGY)
- successfulmarktplatform.com (SURE FX NATION)
- omersfinance.ltd (OMERS FINANCE)
CNMV warnings assist investors by identifying unlicensed companies that may be fraudulent. Spanish residents are advised to verify a firm's registration status before engaging its services. Investors can contact the CNMV investor service by phone or email to confirm if an institution is properly registered.
The Spanish regulator is one of the most active in the European market in terms of informing about illegally operating entities. Some time ago, it warned, among others, about a clone of the popular investment firm eToro. A few days earlier, it drew attention to the unlicensed activity of companies in the FX/CFD sector.
Spain Expands CFDs Restrictions
CNMV recently implemented additional restrictions on the marketing, distribution and sales of contracts for difference (CFD) instruments. The new rules, which came into effect on 20 July 2023, ban CFD marketing communications and practices aimed at retail clients or the general public. This includes use of sales agents, call centers, event sponsorships, public figures, etc. to promote CFDs.
The CNMV said these extra measures are justified and proportionate. The rules expand on previous CFD restrictions introduced in Spain in 2019 and at the EU level by the European Securities and Markets Authority in 2018.
When announced, the expanded Spanish restrictions caused the share price of Polish online broker XTB to drop sharply on the Warsaw Stock Exchange. However, XTB later stated that the new rules have had a "minor" impact on its operations, and it has not seen significant changes in customer acquisition rates.
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