Swedish regulator withdraws authorisation of investment firm Exceed

Maria Nikolova

FI’s investigation demonstrates that Exceed has continuously breached key customer protection rules within securities legislation.

Sweden’s Finansinspektion (FI) has withdrawn the authorisation of Exceed Capital Sverige AB. Under FI’s decision, the company loses all its authorisations and may no longer conduct regulated business.

The sanction decision was made by FI’s Board of Directors at an extraordinary meeting on Tuesday.

Exceed is an investment firm whose operations consist primarily of consumer advice on financial instruments through both own advisors and tied agents. The company has around 10,000 customers and approximately 40 employees.

FI’s investigation reveals that Exceed has continuously breached key customer protection rules within securities legislation. For example, the company has advised customers, who are often older, to invest their savings in very complex and risky products without ensuring that they have had the necessary knowledge about the large risks. Another example is that the information that Exceed provided to its customers regarding fees was directly misleading.

As a result, Exceed has not demonstrated the duty of care towards its customers that is required by law. The company also hindered FI’s work during the investigation.

As a result of the decision, Exceed may no longer offer investment advice and the regulated business activities will be discontinued in an orderly manner. All customers will be contacted and receive more information from Exceed about how the winding up process will take place.

The business must be wound up no later than September 2, 2020.

Read this next

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.

Opinion

It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”

Technology

Eventus launches AML solution for TradFi and digital asset space

“Firms operating in traditional financial markets and digital assets alike are facing greater challenges than ever to protect themselves from those presenting a risk to their businesses and reputations, along with their standing with government regulators.”

Industry News

Qomply launches direct-to-FCA trade report solution that bypasses ARM

“Certainly, for back-reporting large volumes of data, QomplyDirect removes extra ARM fees by offering the flexibility of sending reports directly to the FCA via a firm’s own infrastructure.”

Executive Moves

BNP Paribas AM appoints Geoff Dailey as Deputy Head of US Equities

“Geoff has more than 20 years’ experience in the industry and as a key, senior member of the team with a strong investment pedigree and leadership profile, he is the natural successor for Pam.”

Retail FX

BUX joins forces with BlackRock for iShares ETFs offering in 7 European countries

“By joining forces with Blackrock, a renowned expert in financial markets and products, we have created a good solution for clients that are overwhelmed by the choice of products and don’t know how and when to start investing. Together, BUX and BlackRock can make a real impact on how Europeans invest and approach their financial future.”

<