Polish regulator proposes new measures for investor protection

Maria Nikolova

Blocking of access to websites of unregistered entities, criminal charges and heavy fines are on the list of proposed measures.

The regulatory landscape for online trading is changing rapidly in Europe, with the Polish Financial Supervision Authority (PFSA, or KNF) also seeking to boost the measures for investor protection.

Today, Poland’s financial regulator published details about its plans to change the way it supervises the financial market. The project is focusing on the FX industry but its provisions can be extended to other market segments monitored by the regulator.

Under the proposals, the KNF would gain the right to run a special register to which the domain names listed on the KNF Public Alerts List would be added. Entering a domain name into the restricted domain register would result in the blocking of access to these pages by Internet service providers. The registry will enable ISPs to automatically obtain information about the domains added to the list.

There are amendments to the Act on Trading in Financial Instruments proposed too. The regulator proposes heavier fines for companies that operate a financial instruments business without proper authorization. The proposed amendment to Article 178 of this law envisages the fine to reach PLN 10 million in case the consequences of the violation are grave. This fine is two times higher than the PLN 5 million fine envisaged for cases when the consequences are not so grave. Criminal offenders will be prosecuted in line with Poland’s criminal code.

The decisiveness of Poland’s financial supervisory body when it comes to online trading was underlined last year, as the regulator outlined new guidelines for the OTC derivatives sector. As Ireneusz Pukin, CEO & Founder at FX Invest Group, the explained in an interview with FinanceFeeds, the new rules covered not only marketing materials, but also stipulated that brokerages should not remunerate their staff based on deposit values, client losses or on preventing withdrawal of funds.

Poland is one of the European countries redrawing rules that govern the online trading industries, in order to boost investor protection. A key factor in the process will be the result of the CFD rule consultation undertaken by the UK Financial Conduct Authority (FCA) – it is likely that the outcome of the consultation will be known by June 2017 and will set the tone for the rest of Europe. France has already implemented changes in its laws that aim to bolster investor protection – the measures in the famous Sapin 2 law include a ban on digital advertising of high-risk financial products like CFDs with high leverage and binary options.

Read this next

Technology

Spotware Systems unveils version 4.4 of Desktop and Web terminals

Spotware Systems, a technology provider for the electronic trading industry, has launched updated versions of its cTrader Desktop and Web terminals, which add new functionality to join a roster of advanced trading capabilities.

Institutional FX

Integral reports best monthly FX volume in 6 months

Currency trading on Integral’s platforms rose in September to its highest levels since March 2022 as increased volatility across financial markets led to greater activity on institutional FX venues.

Retail FX

OctaFX pre-launches new trading platform as MT4 and MT5 remain suspended by Apple

Like many other brokers within the FX and CFD industry, OctaFX had all its eggs in one basket, MetaQuotes, only offering access to MetaTrader 4 and MetaTrader 5. OctaTrader will provide the much needed change.

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

<