de | cn | ru

Market News

UK's FCA Wants Social FX Networks to Get Investment Manager Licenses

The Financial Conduct Authority (FCA) has finally made a step we've been expecting for quite some time - it is demanding that social Forex trading platforms obtain special regulatory permissions to offer their services in the UK. According to a letter, sent to companies offering copy trading services on the island and seen by the Financial Times, all such networks should obtain registration as investment managers. 
 
The logic behind the move is that social trading platforms represent a kind of discretionary portfolio management.  This means that traders bestow control of their investments on a manager who is responsible for all the trading decisions. And although, according to the City watchdog, the brokers don't themselves choose the investment, they are still managing investments at their own discretion.   All Forex brokers with such services will now have to contact their homeland regulators and get permissions to manage money. 
 
A handful of companies have already done so. In July 2013 it became clear that TradeSlide had obtained an FCA license to operate as a money manager. Then, in November 2013, we saw the emergence of TradeCrowd, which secured a license as a financial services firm from the UK watchdog. 
 
But the most peculiar issues are arising for Forex brokers that offer their signal copy services in the UK but are licensed elsewhere. One example is FxPro, which has its registration and regulation with the Cyprus Securities and Exchange Commission (CySEC). The broker, however, has the CySEC permission to manage investments – it got this right in September 2013. Hence, no problems loom for FxPro's SuperTrader network in the UK. 
 
But we have the eToro Openbook issue at hand too. The broker is licensed in Cyprus and can provide its services in the UK, as the company can offer its services in the entire area where the MiFID functions. And yet, eToro does not have permission to manage money. 
 
Apparently the regulatory climate is getting more severe for Forex brokers in the UK. The latest move by the FCA gets business to think deeper about the difference (if any) between advise, execution and management. 
TAGS: financial conduct authority  fca  uk forex  forex signals  forex rules  forex regulation  forex platform  signal copying  fca license  forex license  investment managers  money managers  social forex trading  social forex regulation 

Related forex news

Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia, Cyprus ASIC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Market News

The FCA may push ISPs to take down misleading or unfair financial promotions

Jun 20 2019 15:09:20

The Financial Conduct Authority in the UK (FCA) is considering additional powers in respect of internet service providers (ISPs). In its first annual perimeter report, the FCA says it might push ISPs to take down misleading or unfair financial promotions, in order to improve consumer protection. Read more

Spain’s CNMV blacklists unregulated brokers Financika and Hybrid Reserve

Jun 19 2019 13:00:47

  The latest editions to the warning list of Spain’s financial regulator, the CNMV, are unregulated brokers Financika and Hybrid Reserve. These entities are not authorized to provide investment services or investment advice in Spain, the CNMV said. Read more

Italian regulator orders unregulated brokers CryptoCapitalFX, OnlyTrades, and Nasdaq 500 to cease operations

Jun 17 2019 12:02:43

  Italian regulator Commissione Nazionale per le Societa e la Borsa (CONSOB) warned that CryptoCapitalFX, OnlyTrades, and Nasdaq 500 are not licensed to provide financial services in the country, and ordered them to cease operating in Italy.    Forexbroker. Read more

UK’s FCA warns of AGM Group and Sigma4Trade clone firms

Jun 13 2019 14:18:24

  The UK’s Financial Conduct Authority (FCA) has recently updated its warning list with AGM Group and Sigma4Trade – two forex brokers that falsely claim to operate under legit companies, licensed by the regulator. Read more

Ireland to ban binary options and restrict CFD trades permanently

Jun 12 2019 15:40:33

  The Central Bank of Ireland (CBI), which also serves as a financial services regulator, announced its plans to make ESMA’s product intervention measures permanent. Read more

Spanish regulator adds Olympus Markets and several other offshore brokers to its warning list

Jun 10 2019 13:21:05

  The Comision Nacional del Mercado de Valores (CNMV) has updated its warning list with the already Olympus Markets, as well as several other offshore brokers - TopTradepro, UBCFX and Profit Trade. Read more

The FCA flags GlobalArabFX and iForex24 as clone firms

Jun 06 2019 12:48:37

  UK's Financial Conduct Authority (FCA) has recently warned against two clones: GlobalArabFX and iForex24. Read more

ASIC updates warning list with MRT Markets, RIMarkets, and Golden Day Profit

Jun 03 2019 13:03:04

  The Australian Securities and Investment Commission (ASIC) has added forex brokers MRT Markets, RIMarkets, and Golden Day Profit its list of unlicensed companies illegally targeting local investors. Read more

UK’s FCA adds Key Markets and CFD Premium to its warning list

May 31 2019 07:50:24

  The Financial Conduct Authority (FCA) has recently updated its warning list with unregulated brokers Key Markets and CFD Premium on Thursday. According to the regulator, these brokers have been providing financial services or products in the UK without its authorization. Read more

CySEC proposes a tiered approach to leverage

May 30 2019 14:10:07

  The Cyprus Securities and Exchange Commission (CySEC) proposed a tiered risk-based approach to leverage as a permanent national measure for investor protection. Read more

de | cn | ru