The Cyprus Securities and Exchange Commission (CySEC ) has just announced that it reached a settlement agreement with the iTrader brand operator, Hoch Capital Ltd. The firm has agreed to pay €200,000 related to a compliance investigation started by the regulator.
The specific details of the agreement have not been made public. However, the violations are related to the general principals of conduct related to investment activities and information to clients.
The amount has already been paid by the company to the Cypriot Treasury in full.
Commenting to Finance Magnates the company emphasized that it is devoted to ongoing compliance with laws and regulations. The firm elaborated that there has been a continuous enhancement of its internal controls and procedures to ensure compliance, taking into consideration the changing market environment as well as the regulatory challenges.
"We believe that it is imperative for all organizations across the industry to uphold high compliance standards and set robust arrangements on an ongoing basis to maintain integrity in this evolving market," the official response from the company stated.
Recent CySEC Settlements
Today's settlement stands out as one of the largest in Cyprus. Most recently the local regulator reached a €50,000 deal with Colmex and AFX Capital.
It appears that after several years of pause the local regulator is once again actively finding compliance irregularities for local companies. The news about the settlement with iTrader comes at a time which is increasingly tough for the brokerage industry on the island.
After the ESMA's measures impacted greatly EU-based brokers since August, many companies opened offshore subsidiaries. In the meantime, low market Volatility is currently exacerbating the negative impact on the retail broking sector due to lackluster trading volumes in the current environment.
