Atlantic Global Asset Management (AGAM) and Five Winds Asset Management: BaFin prohibits investment management activities

With notice of 21 August 2018, BaFin ordered Atlantic Global Asset Management (AGAM) and Five Winds Asset Management, Cape Verde, to cease their investment management activities immediately.

These companies offer “suitcases” or complete “portfolios” via the websites www.atlanticgam.es and www.fivewindsam.com and via a network of agents, some of which are domiciled in Germany. They claim that their investors share in the performance of these products. A clear investment strategy is not evident. The investors themselves do not make any decisions as to which financial instruments their money is invested in.

Atlantic Global Asset Management and Five Winds Asset Management therefore engage in investment management activities within the meaning of section 1 (1a) sentence 1 no. 11 of the German Banking Act(Kreditwesengesetz – KWG). However, they do not hold the authorisation required under section 32 (1) of the KWG. They are therefore conducting unauthorised business.

The notices are final.

Source: BaFin

BaFin orders Rothmann & Ginst to cease unauthorised investment broking and investment advice activities

On 3 September 2018, BaFin ordered Rothmann & Ginst to cease its investment broking and investment advice activities. The company’s offices are allegedly located in Luxembourg, London and New York.

The company operates the website www.rothmann-ginst.com, cold-calls German investors and offers to sell them specific financial instruments, such as shares. In addition, it advertises a range of services from tailored investment advice to customised strategies.

Anyone wishing to provide financial services in Germany commercially or on a scale which requires commercially organised business operations needs prior written authorisation from BaFin in accordance with section 32 (1) of the German Banking Act (Kreditwesengesetz – KWG). The company does not have such an authorisation.

The order is immediately enforceable but not yet final.

Source: BaFin

FXC Markets, Berlin: risk of confusion with the authorised company FXCM

A company called FXC Markets, which allegedly has its registered office in Berlin, claims that it has been authorised by BaFin, although this is not the case. FXC Markets uses the company details of FXCM (Forex Capital Markets Limited, Nürnberger Str. 13, 10789 Berlin, www.fxcm.de), giving the false impression that it is linked to FXCM.

Only FXCM is authorised to offer financial services in Germany. FXCM is a broker that has been authorised by the British Financial Conduct Authority (FCA) and has been notified to BaFin.

FXC Markets, however, has not been authorised by BaFin or the FCA. There is no link between the two companies.

Source: BaFin

BaFin orders Questra World Global S.L. to cease its support to Atlantic Global Asset Management’s cross-border investment management activities

In a notice dated 1 October 2018, BaFin ordered Questra World Global S.L., Madrid, Spain, to immediately cease activities through which the company is involved in Atlantic Global Asset Management’s unauthorised business.

Questra World Global S.L. provides services for the unauthorised company Atlantic Global Asset Management. These particularly involve the distribution and marketing of Atlantic Global Asset Management’s financial products.

BaFin has already ordered Atlantic Global Asset Management to cease its unauthorised cross-border activities.

The order is immediately enforceable but not yet final.

Source: BaFin

Onecoin Ltd (Dubai), OneLife Network Ltd (Belize) und One Network Services Ltd (Sofia/Bulgaria): BaFin issues cease and desist orders holding the companies to stop own funds trading in “OneCoins” in Germany

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) issued cease and desist orders against Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize, holding the companies to dismantle their internet based “OneCoins” trading system and to end all sales promotion activities in Germany immediately.

Today’s cease and desist orders are based on the conclusion that the way Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize have “OneCoins” traded as virtual currency in Germany comes down to Eigenhandel (own funds trading) of financial instruments in the meaning of § 1 (1a) sentence 2 no. 4 of the German Federal Banking Act (“KWG”). Eigenhandel as financial service would have required prior authorization by BaFin according to § 32 (1) KWG.

At the same time, BaFin issued a cease and desist order against One Network Services Ltd, Sofia/Bulgaria for the latter’s involvement in the unauthorized trading of “OneCoins” by Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize.

The cease and desist orders are based on § 37 (1) sentences 1 and 4 KWG. They are by law immediately enforceable; they may still be subject to judicial review, however.

The administrative actions follow the 5 April 2017 order against IMS International Marketing Services GmbH, holding IMS to immediately cease and desist from passing on money from “OneCoins” investors, and the 18 April 2017 cease and desist order against Onecoin Ltd, Dubai, holding the latter to immediately end any involvement of it in IMS’ unauthorized money remittance business.

Background

Onecoin Ltd, Dubai, OneLife Network Ltd, Belize and One Network Services Ltd, Sofia/Bulgaria, are part of a network of companies that market units of a virtual currency, which they declare to be a cryptocurrency, under the "OneCoin" brand using a multi-level marketing structure both in Germany and around the world.

On 5 April 2017 BaFin ordered IMS International Marketing Services GmbH, a German limited liability company based in the city of Greven, to immediately cease the unauthorized money remittance business conducted with "OneCoins" investors for Onecoin Ltd, Dubai and not to further execute any pending business of this. Prior to that, as of 17 and 20 February 2017, the authority had imposed an account freeze on IMS' known active accounts in Germany pursuant to § 4 (1) sentence 4 ZAG, with the freeze also being immediately enforceable by law. Between December 2015 and December 2016, IMS had accepted in total approximately 360 million euros on the basis of the agreement concluded with Onecoin Ltd, Dubai. Approximately 29 million euros of this remains in the currently frozen accounts. For more details, see the BaFin press release of 10 April 2017.

Following the 5 April 2017 cease and desist order against IMS, BaFin issued on 18 April 2017 a direct order to Onecoin Ltd, Dubai holding the company to immediately cease and desist from its involvement in the unauthorized money remittance business conducted by IMS through the execution of payments to IMS' accounts and the issuing of payment instructions to IMS.

source: BaFin

Crypto.exchange GmbH: BaFin orders cessation of unauthorized principal broking services

As of 29 January 2018 BaFin issued a cease and desist order against Crypto.exchange GmbH, Berlin, to immediately cease its bitcoin brokerage services (Finanzkommissionsgeschäft).

On its website www.btc-now.de Crypto.exchange GmbH invited investors to transfer their bitcoins to Crypto.exchange GmbH, which would then sell these through an exchange platform; the purchase price obtained, it claimed, would be passed on to the investors within 30 minutes. Crypto.exchange GmbH did not have the necessary authorization to provide such services.

Crypto.exchange GmbH claimed on its website to have some sort of approval of its business by BaFin, which it did not.

The cease and desist order is immediately enforceable; it may still, however, be contested in court.

resource: BaFin