AVA TRADE EU Ltd has offered CFDs in Belgium under the freedom to provide services; iCFD Ltd has, also under the freedom to provide services, offered CFDs and binary options in Belgium. For a public offer of investment instruments in Belgium, however, a prospectus is required. 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.
The reason for the agreed settlements is that, according to the FSMA, AVA TRADE EU Ltd and iCFD Ltd have offered investment instruments on Belgian territory without the requisite prospectus. In addition, AVA TRADE EU Ltd and iCFD Ltd did not submit to the FSMA for approval any advertisement or other document relating to the said public offers.
The agreed settlement with AVA TRADE EU Ltd consists of the payment of EUR 175,000 and publication by name on the website of the FSMA. The agreed settlement with iCFD Ltd consists of the payment of EUR 200,000 and publication by name on the website of the FSMA.
AVA TRADE EU Ltd and iCFD Ltd will also contact all their Belgian clients to offer them the opportunity to terminate their contract at no cost and with reimbursement of the current balance. AVA TRADE EU Ltd and iCFD Ltd have also changed their website and indicated that the products concerned are not intended to be offered to Belgian consumers.
As part of its administrative sanctions policy, the FSMA can accept an agreed settlement if the parties concerned cooperate with the investigation.