The Cyprus Securities and Exchange
Commission (CySEC) on Friday announced that it has reached a €120,000
settlement agreement with General Capital Brokers Limited, a Cyprus
Investment Firm (CIF).
The Cypriot financial market watchdog said
the settlement is to cover for the broker’s possible violation of the country’s Investment
Services and Activities and Regulated Markets Law of 2017.
CySEC added the penality settles the brokerage’s lapses in complying with its requirement on CIF
authorization between November 2020 and October 2021.
The amount also covers for the
broker’s inconsistency in meeting the conditions listed for granting an
operating license within the
aforementioned period.
Furthermore, CySEC said General Capital Brokers fell short
of the laws on general principles and information to clients.
The broker has paid the settlement amount, the financial markets supervisor said.
“It is noted that all amounts payable
relating to settlement agreements are considered revenue (income) of the
Treasury of the Republic and do not constitute income of CySEC,” the financial markets supervisor said.
Enforcement through Settlement
As the watchdog of the securities and trading markets in Cyprus, CySEC continues to monitor various aspects of the industry,
enforcing compliance among market participants.
In July, the regulator warned CFD brokers to
improve their practices or face regulatory actions geared at improving
compliance and enshrining customer protection.
In the following month, CySEC reached a €100,000
settlement agreement with ICC Intercertus Capital to settle the brokerage’s possible
violations of its rules concerning the marketing, distribution and sales of
contracts of difference (CFDs) to retail clients.
In the same month, F1 Markets and Magnum
FX (Cyprus) both paid €150,000 each to CySEC for several possible compliance
violations.
For Magnum FX, some of the concerns raised
by CySEC bothered on meeting the requirements for CIF authorization and operating
license conditions between January 2019 and July 2020.
Meanwhile, both companies previously endured a two-week license
suspension enforced by CySEC in mid-2020.
The Cyprus Securities and Exchange
Commission (CySEC) on Friday announced that it has reached a €120,000
settlement agreement with General Capital Brokers Limited, a Cyprus
Investment Firm (CIF).
The Cypriot financial market watchdog said
the settlement is to cover for the broker’s possible violation of the country’s Investment
Services and Activities and Regulated Markets Law of 2017.
CySEC added the penality settles the brokerage’s lapses in complying with its requirement on CIF
authorization between November 2020 and October 2021.
The amount also covers for the
broker’s inconsistency in meeting the conditions listed for granting an
operating license within the
aforementioned period.
Furthermore, CySEC said General Capital Brokers fell short
of the laws on general principles and information to clients.
The broker has paid the settlement amount, the financial markets supervisor said.
“It is noted that all amounts payable
relating to settlement agreements are considered revenue (income) of the
Treasury of the Republic and do not constitute income of CySEC,” the financial markets supervisor said.
Enforcement through Settlement
As the watchdog of the securities and trading markets in Cyprus, CySEC continues to monitor various aspects of the industry,
enforcing compliance among market participants.
In July, the regulator warned CFD brokers to
improve their practices or face regulatory actions geared at improving
compliance and enshrining customer protection.
In the following month, CySEC reached a €100,000
settlement agreement with ICC Intercertus Capital to settle the brokerage’s possible
violations of its rules concerning the marketing, distribution and sales of
contracts of difference (CFDs) to retail clients.
In the same month, F1 Markets and Magnum
FX (Cyprus) both paid €150,000 each to CySEC for several possible compliance
violations.
For Magnum FX, some of the concerns raised
by CySEC bothered on meeting the requirements for CIF authorization and operating
license conditions between January 2019 and July 2020.
Meanwhile, both companies previously endured a two-week license
suspension enforced by CySEC in mid-2020.