The European Parliament is set to discuss a petition from Hungary against the multi-asset brokerage IronFx on July 11, 2017 as the company’s clients demand justice and repayment of their money.
The petition, which is supported thus far by 50 European citizens, is the result of CySEC’s almost non-existent response to the clients’ complaints. The regulator repeatedly insists that it doesn’t have criminal prosecution powers. However the Cypriot watchdog has suspended and fined firms and revoked licenses – but not against IronFx.
We may expect heated discussions on this issue, as some members of parliament pointed out that the EU overall has been passively witnessing a systematic erosion of regulatory oversight in connection with the forex industry, and called for tougher measures.
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The petition summary is as follows:
Τhe petitioner is an investor who used the Forex brokerage services of IronFX in Cyprus and is among the thousands to claim that they have been defrauded by it. He has not been able to access the funds on his account for more than six months and doubts whether this will ever be possible. He further estimates that the amounts withheld by the company are in the hundreds of millions. After describing the fraud method allegedly used by the company, he accuses the Cypriot Securities and Exchange Commission (CySEC) of failing to provide adequate investor protection, as it has not suspended the licence of the company or invoked the Law on Insolvency, and complains that Financial Ombudsman has not yet processed the considerable amount of complaints before him, which have been pending for almost a year now. He calls for the implementation of EU rules and EP intervention in this matter.
Finance Magnates brought a massive story to the spotlight after a copy of a certain document was obtained. That piece of digital paper was the Annual Report of the Audit Office of Cyprus. It detailed how the Cyprus Securities and Exchange Commission handled the challenges that it faced with IronFx.
Right of petition
Any citizen of the European Union has the right to present a petition to the European Parliament on a matter which comes within the union’s sphere of influence. The petitions portal is designed to allow citizens to submit petitions electronically and provide information about petitions already received.
The petition must be written in one of the official languages of the European Union. It also must be signed and bear the name, nationality and permanent address of the presenter.