The Cyprus Securities and Exchange Commission (CySEC) has announced on Friday that it reached a settlement with Tradernet Limited for €80,000 for some unspecified violations.
“A settlement has been reached with the CIF Tradernet Ltd (“the Company”) for possible violations of The Investment Services and Activities and Regulated Markets Law of 2017,” the Cypriot regulator detailed.
As seen on its website, Tradernet has operations in Russia, Ukraine, and Kazakhstan, offering trading services with stocks, bonds, and exchange-traded funds (ETFs).
The fine was imposed following an onsite inspection of the company by the regulator last March.
According to the regulatory notice, the CySEC found non-compliance in the broker’s part in multiple areas, including some management body requirements, and some “organizational requirements with which a CIF is required to comply.”
The company also provided some inaccurate information to the regulator; however, nothing else was specified.
“CySEC, 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 Cypriot regulator added.
Notably, Tradernet has already paid the imposed fine.
A regulator with a keen eye on any violations
The CySEC is vigilant for any violation of laws by the regulated entities under it. The regulator is also working with overseas regulators, including the UK’s Financial Conduct Authority, in flagging brokers who are taking advantage of Europe’s passport rule.
Recently, the regulator also ordered all entities under its purview to implement the Financial Action Task Force-recommended provisions for COVID-19-related Anti-Money Laundering (AML) ) and counter-terror financing (CFT) policies.
