Turkey's financial watchdog, the Capital Markets Board, has informed the public in its latest bulletin that it fined the local brokerage Venbey Yatırım following a physical on-site inspection of the firm's premises and assessment of its operations.
The Forex brokerage has incurred two penalties worth a little over $113,000 combined. Venbey Yatırım was fined TRY 325,617 over incorrect reporting of client funds regarding the calculation of capital adequacy ratio. A second penalty of TRY 26,049 was incurred over its failure to update its margins at Takasbank - according to Turkish regulation all client funds are held at Takasbank which belongs to the government, and if a client loses money the broker can withdraw it from Takasbank, and if a client makes money the broker has to update the margins at Takasbank.
Hüseyin Gürsöz, CEO, Meta Technologies
We can expect to see this as just the first move in an upcoming wave of fines according to an expert on the Turkish market. Hüseyin Gürsöz, CEO of boutique software and solution provider Meta Technologies, said: "The Capital Market Boards of Turkey is supervising some FX brokers since the Volatility of the Turkish Lira hit the market. There are big losses on some brokers' side and they are having trouble to reach capital adequacy ratio. Fines started with Venbey Yatırım and we can expect more fines regarding capital adequacy ratio."
