Legal Updates

Running an unlicensed forex platform might lead to limitation on officers and severe fines

November 15, 2016

A forex trading company continued to run its trading platform even after the entry into force of the amendment to the Israeli Securities Act and the Israeli Securities Regulations requiring a license for trading platform.  The company filed an application for a license but continued to manage the trade room without a license and with knowledge that it is against the law.

The Enforcement Committee held that the amendment to the law is meant to reduce the risks of investors in trading with a company that has no supervision of the Israeli Securities Authority.  Because the offence was made knowingly and due to the fact that during this period dozens of transactions took place with material profits to the company this should be seriously dealt with. Therefore, the CEO and owner may not serve as officer for two years and financial sanctions were imposed on both him and the company. The Committee noted that these measures are minor because it is the first time that this law is enforced and the company chose to repay the investors at an early stage and admitted the charges as part of the arrangement.