Following the Plus500 announcement that it has agreed to pay a €550 000 settlement, the Belgian financial markets and services regulator Financial Services and Markets Authority (FSMA), has issued a statement bringing clarity to the matter.
According to the publication, the European subsidiaries of Plus500 Ltd – Plus500CY Ltd and Plus500UK Ltd were offering investment services in Belgium. They, however, did not provide the relevant prospectus for investment instruments, as required by Belgian law. The brokerage did not present for approval any advertising materials either.
According to FSMA, the prospectus must contain full information about the type of investment instrument and about the issuer, and must also describe the risks associated with the investment. Moreover, all documents and advertising relating to a public offer of investment instruments in Belgium must be submitted for approval to the FSMA before they may be distributed.
In addition to the €550 000 settlement and the publication of the agreed settlement by name, Plus500 must also inform its Belgian clients that they can terminate their contract at no cost and with reimbursement of the current balance due. Plus500 also shut down its Belgian site and indicated that said products are not offered in Belgium.
Earlier this week Plus500 issued a statement that it has reached an agreement for a €550 000 settlement with FSMA, but explicitly noted this does not mean admission of guilt. From the notice, however, it did not become entirely clear what the violation was. The popular speculation was that it had to do with FSMA’s ban on distribution of Forex, CFDs, and Binary options among Belgian retail clients.