FCA Orders EverFX to Stop Offering CFDs to UK Customers

The United Kingdom’s financial watchdog has acted against Cypriot-based ICC Intercertus Capital Ltd, known by its trade name EverFX, and banned the company from offering contracts for differences (CFDs) instruments in the country.

Per Wednesday’s announcement, the Financial Conduct Authority (FCA) alleged that the broker onboarded many British traders on the overseas entities, which are not authorized to offer services in the UK.

“Many consumers were subsequently induced to transact with overseas members of the EverFX Group, which had no authorization to provide regulated services in the UK meaning that consumers lacked the same level of protection,” FCA noted.

ICC Intercertus Capital, which is licensed in Cyprus, was legally operating in the United Kingdom by passporting its license and was registered under the FCA’s Temporary Permission Regime (TPR) following Britain’s exit from the European Union.

Many Violations

The British regulator raised concerns over the broker’s sales and Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term practices. EverFX allegedly used misleading financial promotions and did not inform investors about the risks of CFDs products. Additionally, the broker pressured clients for investments, instructed clients for trades and failed to allow fund withdrawals.

“This has led to some consumers losing very significant sums of money,” the regulatory notice added.

The FCA has now ordered the Cypriot broker to cease offering CFDs trading services, marketing in the country, close all open positions and return clients’ funds.

Last month, the UK regulator passed a similar order against another Cypriot broker, Finteractive Limited, operating as FXVC, for multiple regulatory violations. Though Cyprus is home to many financial services companies, the island’s regulator recently found many compliance violations by regulated firms. Regulators of Germany and Spain also issued statements on repeated non-Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term by multiple Cypriot firms.