The Polish Commission of Financial Oversight, KNF (Komisji Nadzoru Finansowego), has announced that it is adding GKFX to its warning list. The broker has been targeting clients in Poland via its Financial Conduct Authority license.
The regulator has not provided any specific details as to why has the company is included on its warning list. The note states that the brokerage has not been permitted to conduct brokerage activities without the permission of the Polish financial supervision authority.
GKFX Financial Services Ltd has been regulated by the UK Financial Conduct Authority (FCA) which permits it to passport its regulatory license across the European Union.
The KNF has also granted the company a registration number as it has been operating in Poland since 2013.
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Finance Magnates has reached out to both the KNF and GKFX for a comment. At the time of publication no official response from the brokerage has been received.
Replying to the query, the KNF states that in accordance to the Act on Financial Market Supervision, it issued the notice because the brokerage is suspected of committing a crime. Specifically, the KNF is referencing activities related to trading in financial instruments without the required permit.
GKFX should technically be able to provide its services under the passporting rights the company has under EU law.
Since it came to power in 2015, the Polish government has been moderately eurosceptic and has been criticized by its European partners on the handling of certain matters of common European policy. On its part, the Polish government has been critical of the EU federalist proposals and has vowed to protect local businesses.