CySEC , Cyprus's Financial Securities Regulator which overseas the operations of local Forex firms amongst others, has published the following notices and warnings:
Regarding IKO Forex Limited (https://www.ikofx.com) and ForexYard (https://www.forexyard.com) the Cyprus Securities and Exchange Commission (‘the Commission’) wishes to inform the investors that the company:
1. Is not permitted to provide investment and ancillary services in the Republic, pursuant to Investment Services and Activities and Regulated Markets Law, as:
i. It has never been authorized by the Commission.
ii. Ιt is not a bank or a cooperative firm, established in the Republic and authorised to provide such services.
iii. No notification has been received by a competent authority of another Member State, pursuant to sections 77 and 80 of the above mentioned Law.
2. Is not regulated by the Commission.
The Commission urges investors, before conducting business with Investment Firms, to consult its Web Site (https://www.cysec.gov.cy/default_en.aspx) to confirm the entities that are authorised to provide investment services in the Republic.
The statements in English here and here.
In the matter of FXGM (https://www.fxgm.eu) CySec gave the following notice (Google Translation of the this press release in Greek):
NOTICE
The Council of the Securities and Exchange Commission informs investors that the meeting held on 02 February 2010 decided to impose an administrative penalties totaling € 25.000 (twenty-five thousand euros) in the company 'FX Global Markets Ltd '(the' Company ') for breach of Article 6 (8), 18 (2) (j), 28 (1) 36 (1) (d) of the Investment Services and Activities and Regulated Markets Act 2007 is concerned ('the Act'), paragraphs 14 (1) 18 (1) (a), (c), (e) and 20 (a) of Directive OD144, 2007-01 ('the Directive 1) and paragraph 15 of Directive OD144, 2007-02 ('the Directive 2).
Specifically, the Commission decided to impose an administrative fine in the Company:
1. Amount of five thousand euros (€ 5.000) for non-compliance with Article 36 (1) (d) and paragraph 15 of Directive2 - Evaluation of the contract the client - not because asked customers to provide information on knowledge and experience investment field and did not determine whether they have the necessary experience and the knowledge required to file after each client did not have such information.
To determine the amount of administrative fine, the Commission took into account the following factors:
- The importance attached by the Commission in ensuring that persons covered by the Act fully complies with the provisions of.
- The severity assigned to safeguard the interests and rights customers a CIFs.
- The need to collect data regarding the experience and knowledge of reviews of CIFs, which gives the right to use the IF better whether an investment service is suitable for a client and how he understands the investment risks associated with the offered device or service.
2. Amount of five thousand euros (€ 5.000) for non-compliance with section 14 (1) Directive as an internal rules of procedure do not contain settings and procedures adopted and implemented on the categorization customers. As factors in determining the amount of administrative fines, the Commission received account of the following:
- The importance attached by the Commission in ensuring that persons covered by the Act fully complies with the provisions of.
- IF's Compliance with the provisions of Rules of Operation to ensure compliance with relevant legislation and help to function properly.
3. Amount of ten thousand euros (€ 10.000) for non-compliance with Articles 18 (2) (j) and 28 (1) of the Act and sections 18 (1) (a), (c), (e) and 20 (a) of the Directive 1- Separation of client assets as:
- Not keeping records and accounts so as to ensure at all times without delay, the separation of client assets from own assets and not katatithento in accounts separate from accounts of the Company
-We conducted regularly reconcile the balances of customers with other bank accounts for clients' money Not immediately, it placed client funds in one or more accounts to the agencies specified in paragraph 20 (a) of the Directive 1.
As factors in determining the amount of administrative fines, the Commission received account of the following:
- The importance attached by the Commission in ensuring that persons covered by the Act fully complies with the provisions of.
- The seriousness attached by the Commission in ensuring the accuracy of client assets and general interests and rights towards the CIFs.
- The importance of segregation of client assets from assets of the CIFs. - The seriousness attached by the Commission in its obligation on the CIFs with their clients to protect and not to use those funds customers for its own account.
- The fact that the Company maintains its own money to bank accounts customers and not vice versa.
- The need for placing client funds in designated organizations which contributes to the separation of funds customer funds CIFs and to prevent their use by the same the CIFs and protect them against third in the event of liquidation CIFs.
4. Amount of five thousand euros (€ 5.000) for non-compliance with Article 6 (8) Act as, from the accounts of customers who drive produced seemed to provide the ancillary service of credits or loans to customers to conduct transactions in one or more financial instruments without this service refer to the operation permit.
As factors in determining the amount of administrative fines, the Commission received account of the following:
- The importance attached by the Commission in ensuring that persons covered Law fully complies with the provisions of.
- The seriousness attached by the Commission that the CIFs must act within the limits of their authorization
