Malta MFSA Warns of Two Social Trading Platforms

Interestingly, the unregulated brokers were identified by Spain’s authority and not by the MFSA.

The financial markets watchdog in Malta, Malta Financial Services Authority (MFSA), on Monday issued a warning against two unauthorized entities, GUZMAN CARRERAS Y CIA and DANISPORT SIGLO. Interestingly, the unregulated brokers were identified by Spain’s National Securities Market Commission (CNMV) and not by the MFSA.

Malta’s watchdog said certain activities of the flagged brands are defined as ‘boiler rooms,’ which is a type of fraud that involves contacting customers unsolicited, often by telephone, offering to sell them little-known shares or exotic financial products. Although the boiler rooms often claim to be an authorized service provider with a professional website and forms to fill out, they are in reality swindlers who offer fictitious or worthless shares or products.

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In a recent discovery made by the Spanish regulator, and shared by MFSA, the regulator has become aware that DANISPORT SIGLO XXI. S.L. & GUZMAN CARRERAS does not hold a CNMV license but operates social trading platforms within Spain as well as Europe. Both MFSA and CNMV issue joint warning against unauthorized providers and advise investors to avoid any contact with the alleged entities.

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Following a string of risk warnings and concerned regulators across the EU alerting retail investors to the risks in FX and CFDs trading, the MFSA has also updated its criteria for the entities wanting to offer margin trading services.

As one of the hottest topics in the industry regulation’s debates, the MFSA has set a host of new rules regarding the leverage limits. Forex and CFDs brokers are now required to follow its limitations when offering leverages to their clients.

Finally, Malta’s regulator has ordered its regulated firms to implement procedures that clearly define slippage parameters to ensure that orders are filled in a symmetrical manner.

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