Germay’s BaFin: 50% of brokers do not follow ESMA’s risk warning guidelines

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The German financial regulator BaFin recently published data according to which it had reviewed 40 brokers from seven European countries - the UK, Germany, Cyprus, Malta, Luxembourg, the Netherlands and Ireland. According to that same report more than half of the aforementioned brokers do not use the prescribed risk warning by ESMA correctly. Only 12 of the 40 brokers did so properly, the rest used it only partially and did not formulate the risk warning in accordance with the guidelines they had received. Some omitted it altogether.
Half of the reviewed brokers were regulated in Cyprus, 9% were from Germany and 12% were from the UK. According to the report, again, half of the infringing brokers were the Cypriot ones. Other infringements were related to leverage caps and bonuses, which are banned but brokers are providing them anyway.
Source
Frankly, I am not surprised Cypriot-regulated brokers are doing this, there’s a reason why CySEC remains the most popular and yet the most unreliable of EU regulators.


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