Spain's CNMV Sounds Alarm Bells for ACY Securities

<p>A foreign
exchange and contracts for difference (CFD) broker that recently
celebrated its 13th anniversary has caught the attention of a European
regulator. Spain's market watchdog, the National Securities Market Commission
(<a href="https://www.financemagnates.com/tag/cnmv/" target="_blank" rel="follow">CNMV</a>), added the ACY Securities website to its warning list, claiming the
company lacks the licenses to provide investment services in the local market.</p><p>Australian Broker ACY
Securities Lands on CNMV Warning List after 13 Years in Business</p><p>On February
5th, the CNMV published an update to its warning list, <a href="https://www.financemagnates.com/forex/cnmv-flags-14-unregistered-entities-as-spain-tightens-financial-oversight/" target="_blank" rel="follow">something it does quite
frequently</a>, adding twelve new entities. ACY Securities, a popular Australian
brokerage brand, was among a mix of unlicensed FX/CFD
brokers and cryptocurrency exchanges.</p><p>As Finance
Magnates reported, ACY recently <a href="https://www.financemagnates.com/thought-leadership/acy-securities-celebrates-13-years-of-success-at-gala-anniversary-event/" target="_blank" rel="follow">marked its 13th anniversary</a> and launched a
special <a href="https://www.financemagnates.com/thought-leadership/acy-securities-launches-tradingcup-copy-trading-service-reveals-pip-hunter-champion/" target="_blank" rel="follow">trading contest</a> for the occasion. While the company is licensed, the
Spanish regulator found potential irregularities.</p><p>According
to the broker's website, it operates through two companies. The first is ACY
Securities Pty Ltd, registered in Australia and regulated by the local
Australian Securities and Investments Commission (ASIC). Additionally, there is
ACY Capital Australia LLC, incorporated in Saint Vincent and the Grenadines.</p><p>However, it
should be noted that the Caribbean island nation does not license the FX/CFD
industry, and <a href="https://www.financemagnates.com/terms/a/asic/">ASIC</a>'s license is insufficient to provide services to European
Union clients.</p><p>At the same
time, ACY Securities has versions of its website in at least several languages
of EU member states, including Spanish, French, Portuguese, Italian and German.
It can, therefore, be assumed that the broker wants to provide services
specifically to clients in these European countries.</p><p>Finance
Magnates reached
out to ACY for comment on the matter. At the time of publishing this article,
no response had yet been received, but the post will be updated if one becomes
available.</p><p>Spain Expands CFDs Restriction</p><p>While Spain
was among the European countries that implemented <a href="https://www.financemagnates.com/forex/regulation/esma-extends-curbs-on-selling-cfds-to-retail-investors/" target="_blank" rel="follow">ESMA restrictions on CFD
trading in 2018</a>, the local CNMV has decided to take a further step in 2023 by
introducing more stringent local regulations. </p><p>This
decision stems from the fact that the FX/CFD market continues to see 75% of
retail investors losing money. <a href="https://www.financemagnates.com/forex/spains-expanded-restrictions-on-cfds-set-for-july-20-gets-esma-backing/" target="_blank" rel="follow">The rules introduced in the second half of July
</a>prohibited the operation of sales agents, call centers, and software providers
who were influencing the industry's promotion and encouraging investors to
leverage their capital in the markets.</p><p>The
regulations forbid the sponsorship of events and organizations and the
utilization of public figures to promote CFDs. Nevertheless, this limitation
excludes sponsorship and brand promotions conducted by brokers who either do
not provide CFDs or for whom CFDs constitute only a minor portion of their
overall offerings and activities.</p><p>ESMA has
supported CNMV's initiative by describing it as "justified and
proportionate."</p>

This article was written by Damian Chmiel at www.financemagnates.com.