Erscheinung:30.06.2021 | Topic Unauthorised business Baumont Group LTD/24news.trade trading platform: BaFin prohibits unauthorised portfolio management
In a notice dated 25 May 2021, BaFin ordered Baumont Group LTD, Saint Vincent and the Grenadines, as the operator of the 24news.trade trading platform, to immediately cease its unauthorised portfolio management activities.
Investors can use the platform to open trading accounts that allow them to trade in forex products, indices, shares and contracts for difference (CFDs). The company makes investment decisions regarding the accounts without consulting the account holders beforehand.
Baumont Group LTD is therefore conducting portfolio management within the meaning of section 1 (1a) sentence 2 no. 3 of the KWG on a commercial basis. It does not hold authorisation from BaFin as required under section 32 (1) of the KWG and is thus conducting unauthorised business.
