How did he give the stockbroker?

Evidently another securities trader is about to close down. After a period of relative calm, pets are again asked about the safety and quality of services provided by domestic brokers. The situation may not be so pessimistic.

On Monday, the NB first announced its permission to operate as a securities trader, AFIN Brokers. According to the NB, the company has not fulfilled a number of final obligations for a long time and there were a number of HERE). “From this point of view, the NB wants to prevent further damage to customers and protect their property,” said NB Pavlna Bolfov.

In a detailed reason, the NB proves that the main reasons behind the application of these extreme sanctions were “especially called violations of the rules in relation to customers and the lack of record of customer assets.” which does not allow to inform about the details beforehand, does not become final.

As of Monday, AFIN will not be able to provide investment services, we will only be able to collect its receivables and payables from the investment services provided. This does not mean that he will have to terminate his activity fully and those clients who want their money back again, can brokerem agree on how to deal with nm.

The merchant should sell out St. receivables and volumes from the provided investment services even without calls and there is more opportunity to get the end. They close open position, the investment tools are transferred to another securities trader, and there are various ways to send money. Exit should definitely take place in the form of an agreement between the trader and the customer.

AFIN, of course, disagreed with the NB’s verdict and its drainage and filed enough for the dissolution. In any case, AFIN is still considered a stockbroker, so clients currently have enough time to change their mind. According to AFIN’s report, the investor’s assets are still secured and the company is ready for its release to its clients.

However, if the decision of the NB is confirmed, the company will terminate its activities. AFIN will then be able to apply for the same license after ten years. In addition, if the owner of the company would like to apply for a license for two, under a different name of the company, I do not have much success. In the licensed woman, all the assumptions of the applicant, including personal staff, are very carefully assessed, and this should practically make the owner of AFIN a door (at least officially).

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Interestingly, the NB will decide for investors who use the company’s services abroad. According to the NB, these foreign branches do business on the basis of a single license, the so-called European passport, and its withdrawal AFIN loses its right to provide investment services directly abroad. Foreign regulators informed her about the situation.

Supi se sltaj

At first, responds to the problems of the brokerage company according to the equally competitive company, which sees the difficulty of gaining new clients who want to invest, but AFIN is not a serious partner for them.

However, the full joy of brokerage firms may not be entirely out of place, because the problems of their competition can very well turn against themselves. Information about the invitations and long-term shortcomings in the company’s activities can very easily undermine such a difficult court investor in the quality of services of domestic brokerage companies (especially in terms of one of the well-known companies).

Patria Direct was the first to respond to AFIN’s ability to reach AFIN’s clients, and two days after AFIN’s information on its license was revealed, it began offering its clients assistance with the release of assets and their transfer, of course to Patria Direct. Cyrrus is developing a similar initiative.

On the one hand, Patria’s part is a quick prompt one, but on the other hand, this speed can be loaded into the cards by those who see uncertain competition behind the revocation of Afin’s license (despite conspiracy theories, there is no need for you).

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In the end, however, the other brokers will probably not rejoice, because AFIN Brokers is preparing to conclude agreements on the transfer of its company with Capital Partners. The transfer of the company will leave the contractual relations with the clients of the conservatory.

“Clients who want to buy and sell securities immediately can immediately enter into a contract with CAPITAL PARTNERS as and transfer their assets from AFIN BROKERS, as to CAPITAL PARTNERS as immediately, and thus continue trading,” the company said.

The company Capital Partners has been operating on the Czech capital market since 1994, it does not belong among large and well-known traders and, as it claims, specializes mainly in activities for corporate clients.

Although the current situation is not dramatic yet, it is quite far from the ideal state. One positive bag on the AFIN case can only be found in the oven. The Capital Market Regulation and Supervision Section of the NB (formerly the Securities Commission) is at this stage at least proving to all critics and doubts that its existence is certainly justified.

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