Втб24 Форекс Клуб

The Bank of Russia has revoked licenses of five out on nine foreign exchange dealers operating in the country – Alpari Forex, Forex Club, Fix Trade, Trustforex, and Teletrade Group. The decision comes into force on January

All the companies are subsidiaries of foreign firms that use aggressive advertising to lure Russian clients and focus on moving their money offshore, according to the regulator.

The forex platforms now have a month to cease operations in Russia’s securities market and pay off their customers, the regulator said announcing the measure on Thursday. Liabilities of the five forex platforms deprived of licenses amount to 35 million rubles ($,) and have some 2, clients, only of whom are active, according to department head of the Russian Central Bank Larisa Selyutina.

The official reasons behind the move were repeated violations of Russian law, namely on securities. The Central Bank says the five dealers failed to fulfill the regulator's requirements, had flaws in internal accounting and presented inaccurate information and false reports to the regulator among other violations.

The Central Bank also said that Alpari Forex, Forex Club, Fix Trade, Trustforex and Teletrade Group had few little clients through two years of their work as most of them were drawn not through licensed dealers.

“The clients were drawn through advertisements [of having a Russian bank license], but contracted foreign companies,” Selyutina said.

The head of the central bank's market violations monitoring department, Valeriy Lyakh, explained that such companies enjoy offshore jurisdiction and can have no license at all. The regulator says it has repeatedly warned the forex dealers they must shift their Russian clients into Russia's legal framework, but nothing was done.

Meanwhile, Alpari Forex, Teletrade Group, and Forex Club continued operations, despite revoked licenses. Forex Club told Russian media that it has no documents from the central bank on the decision and hopes for further dialogue on the matter. Teletrade Group said that the news on revoking their license came as a “complete surprise” for the company.

Alpari-Forex also said it has not yet received official notification from the Central Bank, but if it gets it, the platform will file an appeal. The company’s representative told Tass it has 1, clients in Russia and their funds are protected in accordance with Russian legislation.

Thus only four forex dealers are to remain on the Russian market – Alfa-forex, VTB-forex, PSB-forex, and Finam-forex, mostly affiliated with top Russian banks.

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The Central Bank of the Russian Federation (CBR) announced that it has revoked the licenses of five Russian foreign exchange (FX) trading companies. According to a statement on the bank&#;s website, the decision was made due to &#;the repeated violations of the requirements of the Russian legislation on securities within one year.”

The five companies — Forex Club, Alpari Forex, Trust Forex, InstaForex and TeleTrade — will see their licenses expire on Jan. 27, and must stop all operations and return funds to their customers by that time.

The move will give major local banks control of the market. As UrduPoint reported, only four companies will now hold an FX brokers license in Russia, including VTB Forex and Alpha-Forex, which are both affiliated with the country&#;s largest banks.

CBR&#;s Head of Securities Market and Commodity Market Department Larisa Selyutina has downplayed the decision, explaining that the companies losing their licenses have only 2, clients in Russia, since they are all subsidiaries of international companies.

&#;There are not so many direct customers of the companies under our supervision — 2, clients in total. Out of them, no more than are active, those who [have] made at least one deal within a month,&#; said Selyutina.

For its part, Alpari Forex is not going down without a fight, and is prepared to challenge CBR&#;s decision in court.

&#;Until now, Alpari Forex, which is the Russian legal entity for the Alpari brand, has not received any official notification from the Russian regulator about the revocation of the license, and continues to serve clients in full compliance with Russian legislation. Upon receipt of the notification, the Russian legal entity will act in full compliance with the legislation of [Russia] and will appeal the decision of the regulator in a manner prescribed by law,&#; according to a corporate statement.