A foreign exchange and contracts for difference (CFD) broker that recently celebrated its 13th anniversary has caught the attention of a European regulator. Spain's market watchdog, the National Securities Market Commission (CNMV), added the ACY Securities website to its warning list, claiming the company lacks the licenses to provide investment services in the local market.

Australian Broker ACY Securities Lands on CNMV Warning List after 13 Years in Business

On February 5th, the CNMV published an update to its warning list, something it does quite frequently, adding twelve new entities. ACY Securities, a popular Australian brokerage brand, was among a mix of unlicensed FX/CFD brokers and cryptocurrency exchanges.

As Finance Magnates reported, ACY recently marked its 13th anniversary and launched a special trading contest for the occasion. While the company is licensed, the Spanish regulator found potential irregularities.

According to the broker's website, it operates through two companies. The first is ACY Securities Pty Ltd, registered in Australia and regulated by the local Australian Securities and Investments Commission (ASIC). Additionally, there is ACY Capital Australia LLC, incorporated in Saint Vincent and the Grenadines.

However, it should be noted that the Caribbean island nation does not license the FX/CFD industry, and ASIC 's license is insufficient to provide services to European Union clients.

At the same time, ACY Securities has versions of its website in at least several languages of EU member states, including Spanish, French, Portuguese, Italian and German. It can, therefore, be assumed that the broker wants to provide services specifically to clients in these European countries.

Finance Magnates reached out to ACY for comment on the matter. At the time of publishing this article, no response had yet been received, but the post will be updated if one becomes available.

Spain Expands CFDs Restriction

While Spain was among the European countries that implemented ESMA restrictions on CFD trading in 2018, the local CNMV has decided to take a further step in 2023 by introducing more stringent local regulations.

This decision stems from the fact that the FX/CFD market continues to see 75% of retail investors losing money. The rules introduced in the second half of July prohibited the operation of sales agents, call centers, and software providers who were influencing the industry's promotion and encouraging investors to leverage their capital in the markets.

The regulations forbid the sponsorship of events and organizations and the utilization of public figures to promote CFDs. Nevertheless, this limitation excludes sponsorship and brand promotions conducted by brokers who either do not provide CFDs or for whom CFDs constitute only a minor portion of their overall offerings and activities.

ESMA has supported CNMV's initiative by describing it as "justified and proportionate."