Polish Financial Ombudsman Sees FX Market as ‘Poorly Regulated’

Poland witnessed a surge in banks offering FX platforms to retail and institutional investors in the last years.

In response to an increasing number of complaints made by Polish investors that have suffered losses at forex brokers, the nation’s Financial Ombudsman said it would issue a special report in which it would indicate some measures that, in its opinion, will prove effective in reducing monies illegally taken from investors’ forex accounts.

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Aleksandra Wiktorow, head of the Financial Ombudsman, told the Polish financial portal Money.pl that it has seen a spike in complaints from furious investors who claim to have been ripped off by their brokers when they made withdrawal requests. Mrs. Wiktorow didn’t disclose how many complaints were directed towards the financial markets supervisor in the last year, but she said that the number is not massive.

Aleksandra admits that for many Polish people, their forex adventure turns out to be the beginning of their life tragedies. As such, the commission has decided to take a closer look at this problem and prepare a dedicated report, which is expected to be ready by the spring of 2017.

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According to Wiktorow, the report aims to adopt a proactive approach that urges consumers to ensure that they understand the risks of foreign exchange trading before putting their money on the line. It is hoped, that it will help people avoid forex scams.

However, the Ombudsman will not seek a complete ban on forex trading nor any other investments, the opportunities should remain in place, but only for investors who fully understand the risks associated with trading.

Poland witnessed a surge in banks offering FX platforms to retail and institutional investors in the last years, with FX business growing as an alternative investment product. Mrs. Wiktorow said that the forex market in Poland is poorly regulated and is “untouched by law”. However, this opinion contrasts with other claims that consider Poland one of the most mature markets for the retail FX sector, not only in Europe but in the whole world.

“Before we turn to strictly legal matters, it is necessary that we now answer the following questions: What is the forex market really? What are the mechanics of executing transactions? Who are the market participants?” Aleksandra explained in the interview with WP Money.

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