CNMV Flags 18 Unauthorised Investment Firms

In Spain, the National Securities Market Commission (CNMV) has issued a warning to investors regarding 18 investment companies operating without proper registration. These firms lack CNMV's authorization to offer investment services or operate under the Commission's supervision.

The list of cautioned companies involves various FX/CFDs and crypto entities. Investors are strongly advised by CNMV to exercise caution when approached by unregistered entities offering investment services in Spain. The listed entities include Top Tier Capital, Bitbinx, CryptoMaxiTrade LTD, InnovativeFX Trade, SIF - Swiss Investments Funds, Breadinx, Universal Trade, Crytomerge, Active Financial, Noventus, Livingtradefx, Broker Bank Capitals, Axia Trade, Smarttool Trading SC Limited, Dynasty of Cryptos and Platinumhitech, Micron Group, Up Markets, and Circulo de Inversion.

This update follows a prior expansion of the warning list in late January when CNMV added 14 new entities. Investors seeking to verify an institution's registration status can contact the CNMV investor service line. Those who have received offers from unauthorized entities on the warning list are encouraged to report to CNMV through the website's enquiry form or the infringements communication channel.

The recent statement aligns with CNMV's ongoing efforts in supervision and enforcement to protect investors in Spain. Notably, the regulator has implemented additional restrictions on the marketing, distribution, and sale of CFDs products. Effective from July 20, 2023, these heightened regulations prohibit marketing activities targeting retail investors or the broader public for CFDs. This includes the engagement of sales representatives, call centers, event sponsorship, and the use of public figures to endorse CFDs.

CNMV underscores that these supplementary measures strike a necessary and balanced approach, building upon the initial CFD constraints set by Spain in 2019 and those established at the European Union level by the European Securities and Markets Authority in 2018.

Following the announcement of these stricter regulations in Spain, there was a noticeable decline in the share price of the Polish online brokerage firm XTB on the Warsaw Stock Exchange. However, XTB clarified that the impact of the new regulations on its business operations has been “minor,” with no significant effect on its rate of acquiring new customers.