The Israeli Securities Authority (ISA) has fined Israeli firm Real Forex (RFX) NIS 125,000 ($35,000). According to the ISA, the forex broker has been found guilty of submitting significantly incomplete reports for the third quarter (Q3) 2016.
RFX is one of the six brokerages authorized to operate in Israel, but this fine will go down in its disciplinary history. The online trading company failed to maintain its transparency with the ISA. Consequently, the authority’s regulatory work has been hindered, both in observing the trading environment supplied by the broker and in protecting Israeli traders.
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The final penalty amount was reduced by 75 percent because this was the firm’s first transgression. In addition, RFX had taken action against repeating its violation of the new law, and the broker received its license close to the time that the incident occurred.
This is not the first ISA fine imposed on an Israeli brokerage. In May, ISA fined ATRADE, AvaTrade’s Israeli branch, for misleading advertising. This incident was a first, as ATRADE is authorized to operate in Israel under this regulatory authority. ATRADE’s fine had been estimated at NIS 150,000 (USD 42,000) after a 75 percent reduction. The reason behind ISA’s decision to lower the fee was that the company had just received its license, and that the problematic campaign that had been subjected to new regulations was released only a few weeks after the authorization.
Finance Magnates has reached out to RFX for comment and we will update the article when one is received.