Erscheinung:28.11.2018 | Topic Unauthorised business GammaTech Services OÜ and AlphaTec LTD: BaFin orders the cessation of cross-border proprietary trading and cross-border portfolio management
In a notice dated 23 November 2018, BaFin ordered GammaTech Services OÜ, Estonia, and AlphaTec LTD, United Kingdom, to cease cross-border proprietary trading and cross-border portfolio management immediately.
On their jointly operated trading platform www.kayafx.com GammaTech Services OÜ and AlphaTec LTD offer contracts for difference (CFDs) on shares, indices, currencies, cryptocurrencies and commodities. In facilitating their customers’ access to the contracts offered, GammaTech Services OÜ and AlphaTec LTD are conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the German Banking Act (Kreditwesengesetz – KWG) in the Federal Republic of Germany as a service for others. They also offer “trust management” of client funds.
GammaTech Services OÜ and AlphaTec LTD are thus conducting portfolio management for others within the meaning of section 1 (1a) sentence 2 no. 3 of the KWG in the Federal Republic of Germany. However, they do not hold the authorisation required under section 32 (1) of the KWG.
This notice is immediately enforceable by law.
