The Financial Conduct Authority (FCA) of the United Kingdom has expressed concerns about how trading applications interact with private investors, following an examination of 12 companies which revealed gaps in pricing models, risk assessments and digital tools. engagement features.
The FCA examination series have noted that if certain companies act only as an incredible, by directing customers to affiliated platforms, others operate as “manufacturers and distributors” of financial products and must ensure that they comply with regulatory obligations under existing rules.
The income models vary considerably from one company to another, in particular with regard to transaction and subscription costs, as well as the interests received on customer cash flows. Certain price structures may not provide equitable value to customers and require re -evaluation, said the regulator.
All companies have recognized the importance of using digital engagement practices (PED), such as notifications. However, the effectiveness of relevance controls was mixed, some companies do not have sufficient guarantees to assess whether customers include risks related to high -risk investments.
A recently published occasional study, entitled “Playing on the market: an analysis of behavioral data for digital engagement practices and investment results”, examines the impact of PEDs, such as drawing and alerts, on investor behavior. The study reveals that the applications using more PED tended to attract the youngest, low -income users who make more frequent transactions and experience lower investment yields.
-Although the study has not established a direct link between the functionalities of these applications and financial losses, it has raised concerns about their potential to encourage harmful commercial behavior.
The FCA said that the conclusions aim to help new entrants and traditional brokers to understand their responsibilities and guarantee that customer protection remains a priority, especially when they seek to offer applications based on applications. Investment services.
That said, the FX brokers are among those who have been targeted by dishonest operators who try to separate the investors without distrust of their money.
The high number of alerts issued by the city surveillance organization, which issues alerts almost daily, underlines the concern of the sector in the face of cloned sites.
The FCA series encourages merchants or those who plan to embark on online trading must be cautious. Anyone who chooses to register on a fraudulent platform must keep in mind that it will not benefit from the help of the financial authorities in the event of a problem.
