FXCM pays administrative penalty of $180,000 to Canadian regulator
The Financial and Consumer Services Tribunal (Tribunal) approved a settlement agreement between Forex Capital Markets, the Financial and Consumer Services Commission (FCNB) and the Manitoba Securities Commission, which requires Forex Capital Markets to pay administrative penalties for non-compliance with securities laws.
Securities laws in Canada require a firm in the business of trading in securities to be registered with the respective provincial regulators. Although Forex Capital Markets LLC (of New York, NY) and Forex Capital Markets Ltd. (of London, UK) were not registered to sell securities in New Brunswick or Manitoba, they were found to have facilitated trades for residents in these provinces. Forex Capital Markets cooperated with both the FCNB and the Manitoba Securities Commission and transferred their accounts to a firm registered in Canada.
The company agreed to pay an administrative penalty of $180,000, of which $22,000 will be paid to the FCNB. The agreement was approved following a joint settlement hearing on Oct. 14.
New Brunswickers are reminded about the importance of checking registration before making investments. Being an informed investor is your best defence against investment fraud. Residents can use the Registration Search Tool on the FCNB’s website to find out if a person or company is registered. The site also has bilingual resources and information to help consumers make informed financial choices.
Source: FCNB- FXCM pays administrative penalty of $180,000 to Canadian regulator
