Nałożenie kar na Prosper Capital Dom Maklerski SA

On March 28, 2023, the Polish Financial Supervision Authority (KNF) published a press release to inform that it has fined Prosper Capital Dom Maklerski SA, a brokerage house, for violating several articles under the MiFID II Delegated Regulation (Commission Delegated Regulation (EU) 2017/565) and the Act of July 25, 2005 on trading in financial instruments (or simply Act on Trading in Financial Instruments). Specifically, the company was fined in total PLN 1,200,000 for:
1. failing to adequately assess the suitability of products for a target market,
2. failing to adequately assess the suitability of a product for clients (the questionnaire used did not sufficiently support such assessment),
3. distributing bonds to customers which were not included in the target market for such instruments and should have not been able to purchase the instruments; and
4. failing to supply adequate marketing material addressing the risks involved when investing in bonds of a particular issuer.
According to KNF, Prosper Capital Dom Maklerski SA hence „conducted its business in an unreliable and unprofessional manner and in a manner inconsistent with the best interests of clients“ which constituted violations of articles 83b and 83c of the Act on Trading in Financial Instruments and of article 44 of the above noted Delegated Regulation.
Additionally, the KNF has revoked the firm’s authorization to „accept and transfer orders to buy or sell financial instruments and to offer financial instruments“.