Warsaw (Puls Biznesu) – The Polish SEC accused WGI brokerage for infringing the rules of the stock exchange. WGI is going to appeal but in the meantime it founds a company in the UK.
The Security and Exchange Commission KPWiG withdrew the permission to run brokerage operations of WGI Dom Maklerski brokerage. This is the tenth withdrawal in the history of the Polish capital market.
“The scale of failures and the lack of reliability do not allow the company to be licensed. KPWiG acted first of all to protect WGI clients”, the commission said in a communiqué.
WGI was fined with PLN 0.5m (EUR 126,800). The company does not agree with the allegations.
“We are going to complain. The management is preparing an appeal”, Artur Niewrzedowski from WGI said.
The company may not conclude new brokerage agreements nor render services according to the old ones. Currency exchange, money transfer, or operations necessary to end the activity are not included in the ban. KPWiG wants WGI to stop rendering services till May 31.
Meanwhile WGI is planning to run operations from London. The GSM decided yesterday that WGI Europe would continue the brokerage operations. The headquarters will be located in London while the Warsaw bureau will be the Polish unit of the new entity. On April 3, the brokerage resigned from the license already.
(PLN 1 = EUR 0.254)