Breaking: CySEC Fines OptionFair €138,000 on Multiple Counts

The operator of binary options brokerage brand of TechFinancials, OptionFair, has been fined by the Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term). The amount of the penalty against B.O. Tradefinancials Ltd is €138,000. As stated by CySEC, the fine is related to multiple compliance issues.

In its announcement, CySEC highlights a €3,000 fine for failure to apply appropriate policies and procedures to ensure sufficient compliance with some procedural regulatory requirements. A further € 20,000 is added for failure to take reasonable steps to avoid undue additional operational risk in outsourcing activities to third parties.

According to the watchdog, the company has not supervised sufficiently the activities of one such third party to which it outsourced some services.

Another €30,000 has been added by CySEC as the regulator refers to the parent company of OptionFair failing to comply with the requirements to to serve the best interests of its clients in relation to the allocation of trading bonuses.

The CySEC has added a further €30,000 for failure to comply with the requirements for fair advertising. The regulator has highlighted that B.O. Tradefinancials Ltd has had to make the information on its website clearer.

A €15,000 fine is penance for for the binary options brokerage’s failure to inform clients about the appropriate risks associated with trading.

The biggest fine totals €40,000 and is related to the company’s failure to comply with the Cypriot securities law requirement to assess the suitability of clients. Customers of brokerages regulated by CySEC need to provide information about their knowledge and experience in the investment field.

According to an official statement from TechFinancials regarding the fine: "The Company has implemented measures to ensure these breaches do not recur and expect to have fully implemented any necessary corrective actions by 5 September 2016, as required by CySEC. The Company does not anticipate that the fine will have a material impact on the results for the current financial year and still expects to meet market expectations."