Erscheinung:24.03.2021 | Topic Unauthorised business Royal C Bank/online trading platform royalcbank.com: BaFin prohibits unauthorised portfolio management
In a notice dated 1 March 2021, BaFin ordered Royal C Bank to immediately cease its unauthorised portfolio management activities.
The company opens trading accounts for clients on its trading platform royalcbank.com. These accounts are supposed to enable clients to trade in CFDs, forex and crypto currencies. The company makes investment decisions regarding the accounts without consulting the account holders beforehand. Whenever losses accrue on the managed accounts, Royal C Bank offers its clients the chance to participate in a “Wiederherstellungsprogramm” (“recovery programme” – only offered to clients in Germany).
The company is therefore conducting portfolio management activities within the meaning of section 1 (1a) sentence 2 no. 3 of the KWG on a commercial basis. However, it does not hold authorisation from BaFin as required under section 32 (1) of the KWG and is thus conducting unauthorised business.
According to the documents available to BaFin, Royal C Bank has registered offices in the United Kingdom, Singapore and Switzerland.
