Austrian financial regulator initiates 162 investigations in 2016 amid efforts to curtail unauthorized businesses

Maria Nikolova

The FMA is grappling to tackle the activities of “dubious” financial services providers based abroad.

The Austrian financial market remains a lucrative target for unauthorized businesses, according to an announcement by the Austrian Financial Market Authority (FMA) published today. The regulator warns that the number of “dubious” businesses remains high in the face of the decline in the number of investigations launched against such entities in 2016.

The FMA says it initiated 162 investigations in connection to tackling the activities of unauthorised businesses in 2016, this is down from 218 such investigations launched in 2015. The watchdog concluded 204 investigations last year, compared to 254 in 2015. As a result of the investigations, 33 warnings about dubious providers were published, 49 criminal complaints were brought about, and 54 administrative measures were imposed. The latter included 11 penal orders, 3 administrative decisions prohibiting the conducting of business, and 40 procedural instructions.

Whereas the regulator may put an end to the activities of unregulated financial business in Austria, it has problems with enforcement regarding foreign companies. In such a case, the FMA issues a warning and although the regulator says warnings have had a positive effect, the unregulated business activities flourish.

The FMA notes that investors increasingly fall for promises of unrealistically high returns made by unauthorized Forex and CFD companies.

A number of European jurisdictions are planning to introduce extra safeguards for investors by reforming CFD regulations. Germany’s BaFIN has issued a General Administrative Act earlier this year, restricting the offer of contracts for difference (CFDs) to retail clients. CFD brokers have until August 10, 2017, to comply. The German regulator is restricting the marketing, distribution and sale of CFDs with additional payments obligation. These will no longer be available to retail clients in response to concerns of unlimited losses and substantial risks that investors face when the difference to be paid exceeds the capital they have invested because investors have to pay the difference amount from their other assets.

The Central Bank of Ireland is also considering a stricter approach with regards to CFD offering in order to boost investor protection. Among the proposed measures is a ban on the sale and distribution of CFDs.

Read this next

Retail FX

Weekly Roundup: Funded Trader closure, Coinbase adds Apple Pay

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

blockdag

Presale Rush: BlockDAG Outshines Furrever Token and DeeStream Presales with 20,000x ROI Potential, Raising Over $16.4M

Discover April 2024’s presale hits, as BlockDAG, Furrever Token, and DeeStream Presales battle it out. Which will explode in 2024?

Digital Assets

Shakeeb Ahmed gets three-year sentence for hacking Nirvana, Crema

A New York court has sentenced computer security engineer Shakeeb Ahmed to three years in prison for conducting flash loan attacks on decentralized cryptocurrency exchanges in 2022, marking the first-ever conviction for a breach involving smart contracts.

Digital Assets

TON Foundation teams up with HashKey on fiat access for Telegram Wallet

The TON Foundation, a collective of developers behind The Open Network (TON) blockchain, has entered into a strategic partnership with digital asset financial services firm HashKey Group.

blockdag

BlockDAG aka Kaspa’s Toughest Competitor Releases DAGpaper, Lightes Up The Las Vegas Sphere Pulling Shiba Inu Investors & Amassing $16.4M in Presale

BlockDAG, emerging as a Kaspa competitor, unveils its DAGpaper, spotlighting the Las Vegas Sphere and captivating Shiba Inu investors with a $16.4M presale success.

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

<