Autorité des Marchés Financiers (AMF) in France has said that it would lift a ban against 24option.com.
Financial Regulators in France Lift Ban on 24Option To Allow Service Offering
French financial authorities will now allow 24Option.com to provide online e trading services including forex and CFD in France.
The owner of 24Option, Rodeler Limited, which obtained its license from CySEC in Cyprus, was banned last year August following revelations that the broker was providing binary options to French traders against the law.
Rodeler Limited offers traders access to forex and binary options but it was determined that it does not comply with certain regulatory standards. Last year, the AMF decided to ban the broker from providing services to existing and new clients in France.
This decision to ban the broker was the first for the AMF.
A month prior to the August ban, the ASIC had issued a warning that 24Option was conducting unlicensed activities but the company agreed to work with the regulator.
While the AMF has no authority to ensure compliance by a foreign service provider in France under the free provision of services, Article 62 MiFID allows the host Member State to provide guidelines within which a host member state can take action to protect investors within its jurisdiction in the event a service provider acts in a way that is evidentially harmful to investors.
This provision, which was transposed into French law, enables the AMF to protect investors and ensure the markets function well even if this involves banning the service provider from providing services in France.
It was therefore found that Rodeler Limited failed to meet the provisions relating to providing relevant information and acting with integrity for the best interests of its clients and this had detrimental effects for investors in France.
By lifting the ban, the AMF indicated that 24option had taken the right steps to remedy the situation so that the broker will only offer French traders leveraged trading products i.e. protected CFDs.
Regulatory authorities in France are the strictest in Europe with regard to leveraged trading.
One of the conditions for lifting the ban is that the broker provides a guaranteed stop loss to each CFD trade and that traders who have a specific stop loss price in place can be the only ones to access CFD trades.
Although this is a good step in the right direction for 24Option, the broker has faced numerous challenges with regulators. To start with, it was one of the firms that was denied a forex broker license to operate in Russia and also received a warning from the FMA, the overarching regulator in New Zealand.