CNMV Alerts: Uncovering Illicit Financial Websites Targeting Spain

Spain's National Securities Market Commission (CNMV) has issued warnings concerning 14 financial companies promoting investment services without proper registration, highlighting their lack of authorization to operate legally in the country.

According to CNMV, these unregistered firms violate local regulations, which require them to register with the market watchdog before conducting financial services or investment activities in Spain. The commission's warnings play a crucial role in helping investors identify potentially fraudulent entities.

View the full announcement of CNMV here: https://www.cnmv.es/webservices/verdocumento/ver？t=%7bb83afcf2-82b8-4e20-81e6-520571cd418e%7d

Spanish residents are strongly advised to verify a firm's registration status before engaging its services. Investors can contact CNMV's investor service via phone or email to confirm the legitimacy of an institution.

Renowned for its active role in informing about illegal entities, CNMV previously issued warnings about a clone of the popular investment firm eToro and highlighted unlicensed activities in the FX/CFD sector.

In addition to these warnings, CNMV has recently implemented stricter regulations on contracts for difference (CFD) instruments, banning marketing communications and practices targeting retail clients or the general public. These rules, effective since July 20, 2023, encompass various promotional methods, including the use of sales agents, call centers, event sponsorships, and public figures to promote CFDs.

CNMV justifies these additional measures as necessary and proportionate, building upon previous CFD restrictions introduced in Spain in 2019 and at the EU level by the European Securities and Markets Authority in 2018.

The announcement of expanded Spanish restrictions led to a sharp drop in the share price of Polish online broker XTB on the Warsaw Stock Exchange. However, XTB later clarified that the new rules had a “minor” impact on its operations, with no significant changes observed in customer acquisition rates.