Spain's National Securities Market Commission (CNMV) has warned against nine unauthorized investment firms, continuing its crackdown on unregulated financial service providers operating in the Spanish market.

Spanish Market Regulator Flags Nine Unauthorized Investment Firms

The regulatory body identified several entities offering investment services without proper authorization, including Turkdex, Macan Holdings, Apex Investments, and Fortunex Algo. These firms, along with Market4s, Daily Brokers, FCapital24, Trade Republica, and Alpha-Learning, have been found to operate without the necessary registration in CNMV's official registry.

“According to CNMV records, these institutions are not registered in the corresponding registry of this Commission and, therefore, are not authorized to provide investment services or other activities subject to the CNMV’s supervision,” the CNMV commented.

The CNMV's action comes amid heightened scrutiny of unauthorized investment firms, often posing significant risks to retail investors. Operating outside regulatory oversight, these entities lack the mandatory protections and controls required for licensed investment service providers.

Last month, CNMV issued another warning, including copycats of AvaTrade, LCG, and JFD, popular retail trading brands in Europe. Despite the intense efforts of regulators and companies, the issue of clones seems unsolvable.

Spain’s Expanded Restrictions on CFDs

These enforcement actions follow a broader pattern of regulatory vigilance in Spain's financial markets. Earlier this year, the CNMV implemented stricter regulations on CFD marketing and distribution, demonstrating its commitment to protecting retail investors.

The rules prohibit using public figures to market CFDs and sponsoring events or organizations for promotional purposes. However, exemptions apply to brokers for whom CFDs represent only a minor portion of their offerings or general activities, as well as to sponsorships and brand ads from brokers not engaged in CFD trading.

The new regulations also exclude certain CFD-related information: details requested solely by clients, information necessary to carry out CFD transactions, and ‘objective data on CFDs,’ such as fact sheets without subjective content.

XTB, one of the leading brokers in the local market, has announced that it will continue operating in Spain despite the Spanish National Securities Market Commission (CNMV) introducing new restrictions on marketing CFDs.