The Cyprus Securities and Exchange Commission (CySEC) has taken enforcement action against BCM Begin Capital Markets again, this time settling for a monetary penalty of €50,000. The settlement was announced today (Thursday) for “possible violations” of local regulations. The company has already paid the proceeds for settlement.

Possible Regulatory Violations

“The investigation for which the settlement was reached involved assessing the Company’s compliance regarding the provision of investment services to clients [who were] residents of Slovenia,” as mentioned in the regulatory notice.

The possible lapses were related to the requirements around Cyprus Investment Fund (CIF) authorization and organizational requirements. There were also possible lapses around conflicts of interest, assessment of appropriateness to clients, drawing up of key information documents, and form and content of the key information document.

BCM Begin Capital Markets, previously known as OX Capital Markets Limited, operates multiple brands, including CapitalPanda and ProfitLevel. They offer counterparty trading services with forex instruments, equities, and other asset classes. The company received its CIF license in April 2015. However, it has voluntarily renounced its license, which is now under regulatory scrutiny.

The latest action against BCM Begin Capital Markets was not the first. Last year, it settled with the Cypriot regulator twice, first for a monetary penalty of €170,000 and then for €100,000.

CySEC Cracking Down against Compliance Lapses

CySEC is one of the preferred regulators for retail forex and contracts for differences (CFDs) offering services in the European Union. The regulator is vigilant and is actively taking action against companies with regulatory lapses. Most recently, it cracked down on TriumphFX due to concerns over the influence of its sole indirect shareholder.

Earlier this month, the Cypriot watchdog took action against the operator of TradeEU.com and Titan Edge for a monetary settlement of €90,000.

Meanwhile, the regulator is actively combating imposters who pose as regulatory staff to defraud investors and, in some cases, even companies. The financial services market regulator in New Zealand has raised multiple alarms regarding individuals impersonating CySEC.