CNMV Flags 14 Unregistered Entities as Spain Tightens Financial Oversight

by Damian Chmiel
  • Local market watchdog warns against unlicensed financial firms, cautioning investors.
  • Few months ago CNMV expanded the FX/CFDs market restriction for retail traders.
Spain
Bloomberg

Spain's National Securities Market Commission (CNMV) has issued new warnings regarding 14 financial companies that are promoting investment services without proper registration. These unregistered firms lack authorization from the CNMV to operate in Spain legally.

CNMV Warns Investors of 14 Unregistered Financial Firms

The CNMV stated that companies mentioned in the newest warning are not registered in Spain to provide financial services or investment activities. Under local regulations, firms must register with the market watchdog before legally operating in the country.

The following companies were named in the CNMV warning:

  • premiumtrade247.com (PremiumTrade247 LTD)
  • byalpha.org (Compic Solutions LTD)
  • akselinvest.pro (AKSEL INVEST PRO)
  • evallvellc.com (EvallVellc)
  • xtreamforex.com (Xtream Markets)
  • nordequity.com (Sinvara LLC)
  • bdm-investments.uk (BDM INVESTMENTS)
  • profinancetrade.com (Profinancetrade LTD)
  • imperialtrade.net IMPERIALTRADE)
  • ontradepro.com (ONE TRADE PRO)
  • uptowns-finance.com (UP-townfinance LTD)
  • crownenergyinvestment.com (CROWN ENERGY)
  • successfulmarktplatform.com (SURE FX NATION)
  • omersfinance.ltd (OMERS FINANCE)

CNMV warnings assist investors by identifying unlicensed companies that may be fraudulent. Spanish residents are advised to verify a firm's registration status before engaging its services. Investors can contact the CNMV investor service by phone or email to confirm if an institution is properly registered.

The Spanish regulator is one of the most active in the European market in terms of informing about illegally operating entities. Some time ago, it warned, among others, about a clone of the popular investment firm eToro. A few days earlier, it drew attention to the unlicensed activity of companies in the FX/CFD sector.

Spain Expands CFDs Restrictions

CNMV recently implemented additional restrictions on the marketing, distribution and sales of contracts for difference (CFD) instruments. The new rules, which came into effect on 20 July 2023, ban CFD marketing communications and practices aimed at retail clients or the general public. This includes use of sales agents, call centers, event sponsorships, public figures, etc. to promote CFDs.

The CNMV said these extra measures are justified and proportionate. The rules expand on previous CFD restrictions introduced in Spain in 2019 and at the EU level by the European Securities and Markets Authority in 2018.

When announced, the expanded Spanish restrictions caused the share price of Polish online broker XTB to drop sharply on the Warsaw Stock Exchange. However, XTB later stated that the new rules have had a "minor" impact on its operations, and it has not seen significant changes in customer acquisition rates.

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Spain's National Securities Market Commission (CNMV) has issued new warnings regarding 14 financial companies that are promoting investment services without proper registration. These unregistered firms lack authorization from the CNMV to operate in Spain legally.

CNMV Warns Investors of 14 Unregistered Financial Firms

The CNMV stated that companies mentioned in the newest warning are not registered in Spain to provide financial services or investment activities. Under local regulations, firms must register with the market watchdog before legally operating in the country.

The following companies were named in the CNMV warning:

  • premiumtrade247.com (PremiumTrade247 LTD)
  • byalpha.org (Compic Solutions LTD)
  • akselinvest.pro (AKSEL INVEST PRO)
  • evallvellc.com (EvallVellc)
  • xtreamforex.com (Xtream Markets)
  • nordequity.com (Sinvara LLC)
  • bdm-investments.uk (BDM INVESTMENTS)
  • profinancetrade.com (Profinancetrade LTD)
  • imperialtrade.net IMPERIALTRADE)
  • ontradepro.com (ONE TRADE PRO)
  • uptowns-finance.com (UP-townfinance LTD)
  • crownenergyinvestment.com (CROWN ENERGY)
  • successfulmarktplatform.com (SURE FX NATION)
  • omersfinance.ltd (OMERS FINANCE)

CNMV warnings assist investors by identifying unlicensed companies that may be fraudulent. Spanish residents are advised to verify a firm's registration status before engaging its services. Investors can contact the CNMV investor service by phone or email to confirm if an institution is properly registered.

The Spanish regulator is one of the most active in the European market in terms of informing about illegally operating entities. Some time ago, it warned, among others, about a clone of the popular investment firm eToro. A few days earlier, it drew attention to the unlicensed activity of companies in the FX/CFD sector.

Spain Expands CFDs Restrictions

CNMV recently implemented additional restrictions on the marketing, distribution and sales of contracts for difference (CFD) instruments. The new rules, which came into effect on 20 July 2023, ban CFD marketing communications and practices aimed at retail clients or the general public. This includes use of sales agents, call centers, event sponsorships, public figures, etc. to promote CFDs.

The CNMV said these extra measures are justified and proportionate. The rules expand on previous CFD restrictions introduced in Spain in 2019 and at the EU level by the European Securities and Markets Authority in 2018.

When announced, the expanded Spanish restrictions caused the share price of Polish online broker XTB to drop sharply on the Warsaw Stock Exchange. However, XTB later stated that the new rules have had a "minor" impact on its operations, and it has not seen significant changes in customer acquisition rates.

Participate in Our Fraud Survey: Your Opinion Matters!

We invite you to participate in our joint survey conducted by FXStreet and Finance Magnates Group, which explores prevalent online financial fraud types, platforms used for fraudulent activities, effectiveness of countermeasures, and challenges faced by companies in tackling such fraud. Your valuable insights will help inform future strategies and resource allocation in combating financial fraud.

Social Media Scams: Help Shape the Fight with Your 2024 Survey Participation

About the Author: Damian Chmiel
Damian Chmiel
  • 1378 Articles
  • 28 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1378 Articles
  • 28 Followers

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