Erscheinung:14.01.2021 | Topic Unauthorised business, Consumer protection Violation of the authorisation requirement under section 32 (1) of the German Banking Act (Kreditwesengesetz – KWG)
FX-One/online trading platform fx-one.com: BaFin prohibits unauthorised contract broking and portfolio management
In a notice dated 4 December 2020, BaFin ordered FX-One, allegedly domiciled in the United Kingdom, to immediately cease its unauthorised contract broking and portfolio management activities.
The company invites clients to open trading accounts on its website fx-one.com on which forex products, crypto currencies, shares, indices and CFDs can be traded. In its Terms and Conditions, FX-One refers to itself as “agent” and “attorney“, operating on behalf of and for the account of its clients. Furthermore, employees of FX-One make trading decisions without consulting the investors.
The company thus conducts contract broking as defined in section 1 (1a) sentence 2 no. 2 of the KWG and portfolio management as defined in section 1 (1a) sentence 2 no. 3 of the KWG on a commercial basis. FX-One does not hold authorisation from BaFin as required under section 32 (1) of the KWG and is therefore conducting unauthorised business.
