The Capital Markets Board (CMB) imposed an administrative fine of 27.7 million TL on stock broker Midas. The company was found to have violated 10 different issues.
Midas, one of Turkey’s largest stock brokerage firms, Capital Markets Board He was sentenced to a huge fine by the (CMB). In the investigations, it was determined that Midas violated 10 rules. For these violations, the stock broker 27.7 million TL will pay a fine.
Statement regarding Midas, CMB’s “2024-14” was made in the bulletin no. CMB stated, “As a result of the investigations carried out by Midas Menkul Değerler AŞ, it was decided to apply the administrative fines in the table below.” and a table was shared. In this table, Midas’ 10 violations and administrative fines for these violations.
Here are the violations that caused Midas to receive a fine of 27.7 million TL
| Reason for Violation | Fines Applied |
|---|---|
| System backup of the brokerage firm’s order transmission system does not meet the requirements in the legislation | 5,833,734 TL |
| Failures to occur in the information system infrastructure of the brokerage firm on various dates | 1,944,578 TL |
| Opening accounts and making transactions for customers by establishing a contractual relationship without address confirmation by the brokerage firm | 3,000,000 TL |
| Allowing customers to open accounts and carry out transactions by establishing a contractual relationship without making a video call, which is mandatory when opening an account via remote identification method by the brokerage firm. | 4.500.000 TL |
| Accepting documents that do not comply with the legislation in account openings carried out by the brokerage firm with remote identification | 1,500,000 TL |
| Failure to fulfill the obligation to use NFC (near field communication) technology in account openings carried out by remote identification by the brokerage firm | 1,000,000 TL |
| Failure of the brokerage firm to fulfill its obligation to perform suitability testing for its customers | 4.500.000 TL |
| Violating the legislation in the use of timestamp by the brokerage firm | 1,500,000 TL |
| Acting against the legislation in the shares and statements made by the brokerage firm through its social media accounts | 3,000,000 TL |
| Detecting deficiencies in the internal control system of the brokerage firm | 1,000,000 TL |
| TOTAL | 27,778,312 TL |
CMB’s bulletin numbered “2024-14” here can be accessed from the link.