Russia’s antimonopoly authorities to stop ads by FX companies with revoked licenses

Maria Nikolova

The Russian Federal Antimonopoly Service will seek to stop advertising of the services of the Forex brokers that have had their licenses annulled.

Further to FinanceFeeds’ earlier report about the Central Bank of Russia annulling the Forex dealer licenses of five companies, including major local players like Alpari Forex, Forex Club and Teletrade, the antimonopoly authorities have also commented on the events.

The Russian Federal Antimonopoly Service (FAS) will seek to deter the advertising of services of the Forex dealers that have had their licenses revoked. In a comment provided to Russian information agency RIA Novosti, FAS commented that:

“The advertising of services subject to licensing is not allowed when an entity is unlicensed. In case of discovery of advertisements distributed in violation of the Law on Advertising, the antimonopoly authorities will take action to stop such advertisements”.

Let’s recall that in July this year the Moscow office of FAS has confirmed that it had received a complaint by the Central Bank of Russia against advertising of services of Instaforex via Yandex.Direct. The complaint targeted an advertisement stating “Instaforex – Licensed by the Central Bank of Russia – Open a demo account – Trade for free and without any risk”. FAS has found out that Instaforex does not have a Russian Forex dealer license and is not a member of a financial self-regulatory organization for Forex dealers. This is in violation of the Russian advertising laws. In case the defendants are found guilty, they face fines in the range of RUB 100,000 – RUB 500,000.

Under the Central Bank’s decisions from December 27, 2018, the Forex dealer licenses of Alpari Forex, Forex Club, TeleTrade, Fix Trade and TrustForex are annulled. The regulator explained that the five brokers had repeatedly violated the Russian securities law. The violations range from providing false accounting statements to failures to follow the instructions issued by the Central Bank.

Russian information agency TASS has reported that the activities of the five companies that were slammed by the Central Bank of Russia earlier this week were focused on aggressive advertising and withdrawing Russian clients to foreign jurisdictions. This explanation has been provided by Larisa Selyutina, Head of the Securities Market and Commodity Market Department.

On Friday, the Association of Forex Dealers, the Russian Forex self-regulatory organization (SRO), announced that it is terminating the membership of the five companies that got their licenses revoked by the Central Bank.

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