The National Securities Market Commission (CNMV) has decided to impose a fine on Xthe old Twitterby allow advertising on the “financial beach bars” platform. The sanction, of 5 million of euros, comes after an infraction committed continuously, and classified by the organization as “very serious”, as indicated in the publication of the sanction in the BOE.
The CNMV has detailed that Twitter breached its collaboration duties by not correctly addressing a request related to different advertisements from the company Quantum AI. Apparently, the platform did not verify whether said company had authorization from the CNMV to provide financial services.
Furthermore, it did not check whether it was on the list of entities that were warned for operating without a license to do so. This is despite the fact that the CNMV already sent a request to Twitter on November 8, 2023 to protect investors against possible fraud or scams that were spreading on digital platforms.
This has led to a sanction to the social network for not complying with its duties to assist the CNMV, which consists of verifying whether Quantum AI was duly authorized to be able to offer investment services, as well as verifying that the company was not on the list of entities warned, both by the CNMV and by other supervisory bodies in other countries, in relation to what is stated in the aforementioned requirement.
As appears in the sanction statement, the interested company has waived appeals through administrative channels, so the sanction is considered final through said means. Of course, it can still be challenged in the Contentious-Administrative Court of the National Court.
The CNMV opened a sanctioning file against Twitter at the end of last year (mid-December), for possible non-compliance, according to the articles 290.1 and 290.2 of the Securities Markets and Investment Services Lawof his duty in relation to the advertisements he had published on the social network of “financial beach bars”, such as Quantum AI.
