FSMA published the reason of the settlement agreement with Plus500
Following the news we have published yesterday (25/04/2017) regarding a settlement agreement between the online trading services to retail customers provider Plus500 and FSMA, today the Financial Services and Markets Authority (FSMA) has issued a press release to inform from its part about the EUR 550,000 settlement.
According the FSMA press release, the agreed settlement consists of a payment of EUR 550,000 and publication by name on the website of the Financial Services and Markets Authority (FSMA).
Plus500CY Ltd and Plus500UK Ltd are the European subsidiaries of the Israeli firm Plus500 Ltd (hereinafter referred to as “Plus500”). They offer certain investment services in Belgium under the freedom to provide services. For a public offer of investment instruments in Belgium, however, a prospectus is required. The prospectus must contain full information about the type of investment instrument and about the issuer, and must also describe the risks associated with the investment. Moreover, all documents and advertising relating to a public offer of investment instruments in Belgium must be submitted for approval to the FSMA before they may be distributed.
The reason for the agreed settlement is that, according to the FSMA, Plus500 offered CFDs on Belgian territory without the requisite prospectus. In addition, Plus500 did not submit to the FSMA for approval any advertisement or other document relating to the said public offer.
In addition to the payment of EUR 550,000 and the publication of the agreed settlement by name, Plus500 will also contact all its Belgian clients to offer them the opportunity to terminate their contract at no cost and with reimbursement of the current balance due. Plus500 also closed down the website www.plus500.be and indicated on its other website that the products concerned are not intended to be offered to Belgian consumers.
As part of its administrative sanctions policy, the FSMA can accept an agreed settlement if the parties concerned cooperate with the investigation.
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