InterTrader Settles with Regulator Following Compliance Violations

Margin trading brokerage, InterTrader Limited has accepted the allegations of falling below the regulatory standards, the Gibraltar Financial Services Commission (GFSC) revealed on Friday.

The brokerage ‘fell below regulatory standards in aspects of its governance arrangements, management functions and internal procedures.’

Acknowledging the allegations, InterTrader detailed that it failed to fully identify and assess the standards that were set by the regulator. It further accepted that the need for improvements in some operational areas related to ‘record keeping, complaint handling and identification.’

Additionally, the brokerage needs improvement on the recording of the potential areas where it might enter into conflicts with its clients.

The shortcomings in regulatory Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term were first revealed in an internal audit conducted by the brokerage appointing an independent third-party in December 2018.

“At the date of this statement, having worked closely with the GFSC since March 2019, ITL has substantially remediated the matters identified in this review, implementing improvements to its systems, policies and procedures,” Friday’s update noted.

Furthermore, between December 2018 and September 2019, the broker’s parent has replaced all InterTrader directors who were appointed during the mishap.

Fined and Settled

Registered as a Category 1 Investment Firm, InterTrader shifted its focus towards professional clients following the acquisitions of two major platforms: Sigma Trading and Argon Financial.

Now, the brokerage has settled with the Gibraltar regulator and agreed to pay a financial penalty. However, the amount of the penalty was not disclosed.

“This Agreement relates to the firm as at March 2019 when standards in certain areas fell below what was expected of it for regulatory purposes,” the regulator stated, adding that it was “reached through a collaborative process and without any formal investigation or formal adjudication.”