Russian c-bank annuls licenses of Alpari, Forex Club, TeleTrade
The broker have to return all funds to their clients not later than January 27, 2019.
In a sweeping move, the Central Bank of Russia has just announced that it is annulling the Forex dealer licenses of some of the major players in the Russian retail Forex scene, including Alpari, Forex Club and TeleTrade.
In its official announcement, the Central Bank explains that the licenses of five companies – Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group, are taken away due to violations of the Russian law by the brokers. The companies have until January 27, 2019, to return all funds to their clients.
- Regarding Forex Club, the regulator explains that the broker has violated the Russian securities law numerous times. The violations include (inter alia): noncompliance with the instructions issued by the Central Bank; violations of the requirements for internal accounting; providing false data to the Central Bank.
- Regarding TrustForex, the Central Bank explains that the broker failed to comply with the Central Bank instructions, and provided false information to the regulator. The company also gave false information on its website and had flaws in its risk management system.
- TeleTrade, inter alia, violated the requirements for calculating its own funds (capital), and provided the regulator with false data. The company also provided false information on its website.
- Alpari Forex also failed to follow the instructions of the Central Bank of Russia. The company committed violations in the way it handled its internal accounting. The company also provided false accounting data and committed violations when handling risks.
- Fix Trade did not provide information on its website as required. It also failed to follow the instructions issued by the Central Bank. The company also violated the Forex dealer license requirements and did not appropriately handle risks.
The move by the Central Bank contrasts with its recent decision to grant a Forex dealer license to Alfa-Forex.