CySEC Imposes an Administrative Fine to London Capital Group Cyprus

The Cyprus Securities and Exchange 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) made public its decision on Friday to impose an administrative fine of €40.000 to London Capital Group (Cyprus) Ltd. According to the announcement, the manoeuvre was decided on a meeting held on April 5, 2021, as the firm did not comply with the article 16(2) of Regulation (EU) 596/2014 on market abuse.

“The Board of the Cyprus Securities and Exchange Commission (the ‘CySEC’) wishes to inform the public that, at its meeting held on the 5th April 2021, decided to impose an administrative fine of €40.000 to CIF London Capital Group (Cyprus) Ltd (the ‘Company’) for non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, as further specified in Articles 2 and 3(8) of the Delegated Regulation (EU) 2016/957 supplementing Regulation (EU) 596/2014, as it does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, which also ensure the monitoring those,” the full statement said, which was published on the CySEC’s official website.

As of press time, there is no official statement coming from the broker about the decision taken by the Cypriot financial watchdog.

Recent Regulatory Maneuvers Done by the CySEC

Recently, CySEC has been active in its oversight within the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry landscape. They partially suspended the Cyprus Investment Firm (CIF) license of Indication Investments Ltd, the operator of the FX and CFDs broker Libertex.com, earlier this month.

The regulatory decision for the suspension has been made on August 3 for multiple alleged violations of mandatory compliances. CySEC found possible lapses on the broker’s part in complying with the regulatory framework on the restriction on the marketing, distribution and sale of CFDs to retail clients. Also, in July, the Cypriot watchdog decided to withdraw the CIF license of Globia Wealth Ltd. A meeting took place on May 17 this year where the watchdog addressed the matter, clarifying that the firm was the one who decided ‘expressly’ to renounce the license.