Polish FSA Issues Public Warning Against Unregistered Brokerage
The Polish Financial Supervision Authority has issued an official public warning on its website against the forex brokerage FXImperium. The warning urges investors to tread carefully with the company, as it has been operating from the country without proper authorization.
FXImperium has been actively operating within Polish territory, despite not currently being registered with the Polish FSA. Investors are advised to be wary if contacted by the company, since its operations do not fall under the legal parameters required for offering financial services in Poland.
The PFSA has maintained its vigilant attitude toward unlawful activity for a long time. Throughout 2017, there have been numerous occasions of similar incidents, in which the regulator has issued stern warnings against brokerages . Investors are expected to due their own due diligence before investing with a company, although the PFSA’s website has a comprehensive list, detailing companies that should be avoided by the public. Following the PFSA, and other global regulators’ websites to obtain the most updated information regarding various financial companies can be the difference between trading at a reliable firm, or falling victim to potentially fraudulent activity that has plagued the industry in recent years.
The scope of the FX industry’s landscape in Poland has been brought to question in recent years. In December of 2016, Aleksandra Wiktorow, head of the Financial Ombudsman, referred to FX industry as âpoorly regulated.â The comment was made in response to increasing complaints over the legality of FX brokers’ operations and handling of client funds. At the time, he commented: “Before we turn to strictly legal matters, it is necessary that we now answer the following questions: What is the forex market really? What are the mechanics of executing transactions? Who are the market participants?” Aleksandra explained in the interview with WP Money.”
The sheer number of complaints that have been issued in the last couple of years sparked a clamp down by the PFSA and Polish officials to assure brokerages’ compliance with regulatory restrictions and rules. The regulator continues to issue public warnings , in its attempt to limit additional unlawful activity that can influence Polish and global investors.