French Authorities to Engage With CySEC to Tackle Forex and Binary Scams

Yesterday the AMF, the Paris prosecutor's office, the French Competition and Consumer Fraud Authority and the French Prudential Supervisory Authority, which is an independent administrative authority operating under the umbrella of the French central bank, have pledged to reign in the “fraudulent practices targeting French consumers of financial services”.

The authorities have jointly come to the conclusion that existing practices in the 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 and binary options industries have led to an outbreak of nothing less than financial fraud. The French regulatory authorities are jointly pressing for tighter standards when regulating these products and will be joining the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) in devising appropriate standards of conduct.

Tackling Increasingly Dishonest Practices

In addition the regulators will be cooperating in finding ways to limit the access of unregulated entities to the market and prosecute the entities which are engaging in financial fraud.

The delusional promises of easy money have long been a problem for financial regulators, however we are for the first time seeing a coordinated approach from four governmental agencies. France is taking charge against binary options and forex brokers due to the dramatically increased amount of complaints against the practices of a number of both unregulated and regulated brokerages.

With the unrealistic promises of returns, various websites across the industry are sporting financial trading as a means to quickly and easily gain substantial returns on the initial investment.

€4.5 billion Over 6 Years of Trading

To put the business practices which have become popular in recent years across the industry into perspective, the AMF has highlighted that in 2010 it only received 64 complaints from clients of forex brokers. The amount of complaints against both binary options and forex brokers in 2015 totaled 1656.

The regulator has also pointed out that about 44 per cent of the new advertisements on the web which are related to financial investments are focused on speculative trading.

With the finding that over 4 years 90 per cent of clients recorded €175 million in losses, the prosecutor of Paris estimated the financial damages resulting from illegal forex and binary options scams to have totaled €4.5 billion euros only in France for the past six years.