CySEC Settles with Prior Capital’s Management for €100,000

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, popularly known as CySEC, announced on Monday that it has reached a settlement with the management of Prior Capital Cy Ltd, which was formerly known as PriorFx.

The broker paid €100,000 to the Cypriot financial regulator for the settlement, which was reached with Prior Capital’s three Executive Board Members, Konstantin Yasnov, Vladimir Zalogin and Ekaterina Zalogina.

The official announcement specified that the brokerage possibly violated ‘Τhe Investment Services and Activities and Regulated Markets Law of 2017’. Additionally, the regulator specified that there were possible lapses on the part of the board of directors in assessing the company’s mandatory compliances between July 2018 and March 2020.

Though the financial regulator announced it recently, the settlement decision was made on March 8, 2021, and the broker has already paid the agreed amount.

“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, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulator highlighted.

Accused of Some Serious Operational Violations

Prior Capital’s business was oriented around institutional clients, such as hedge funds, small brokers and professional pools of investors. Earlier, it faced serious allegations regarding the safeguarding of clients’ funds.

In 2019, the Cypriot regulator flagged the operations of Prior Capital for non-compliance that followed the suspension of the Cyprus Investment Firm (CIF) license after a few months. Late last year, the regulator completely withdrew the brokerage’s license.

Prior Capital CY Ltd’s former brand, PriorFx Ltd, was previously fined €64,000 in 2017 over violations related to the compliance of its marketing material with the regulatory obligations.