Erscheinung:09.06.2020 | Topic Unauthorised business Equalizer LTD/ Capital GMA/ Platform capitalgmafx: BaFin prohibits unauthorised proprietary trading
In a notice dated 22 May 2020, BaFin ordered Equalizer LTD, Burgas, Bulgaria, to cease its cross-border proprietary trading activities immediately.
The company operates a trading platform, www.capitalgmafx.com, that enables German customers to trade contracts for difference (CFDs).
The company is thus conducting proprietary trading within the meaning of section 1 (1a) sentence 2 no. 4 (c) of the German Banking Act (Kreditwesengesetz – KWG) on a commercial basis without having obtained authorisation from BaFin, as required under section 32 (1) of the KWG. It is therefore conducting unauthorised business activities.
The company also claims to be supervised by BaFin. This claim is not true.
By law, the order is immediately enforceable but not yet final.
