FxNet Pays €60,000 to Settle Multiple Violations with CySEC

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 (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) has just announced that it has reached a settlement with FxNet Ltd, fining the firm €60,000 for violating the Investment Services and Activities and Regulated Markets Law.

Cyprus Investment Firm (CIF) FxNet Ltd is regulated by CySEC since 2013 and therefore has to comply with Cypriot regulations in order to maintain its CIF trading license, which enables the broker to offer its services across Europe, the watchdog stated.

FxNet is an STP broker headquartered in Limassol, with some clients in Eastern Europe. The broker operates under the umbrella of its parent entity BelFX, which is licensed by the International Financial Services Commission (IFSC).

The CySEC fine reflects the violations of several articles of the Investment Services and Activities and Regulated Markets Law.

FxNet has to take corrective measures

More specifically, the fine is for non-compliance with Section 28(1) of the law, which often refers to a CIF’s failure to establish adequate policies and procedures to ensure the compliance of its marketing material with regulatory obligations. This may include the failure to maintain an internal operation manual or orderly records of the information related to the assessment of its marketing materials.

CySEC has further explained that the financial penalty was also imposed for non-compliance with Article 36(1) (a) of the law, relating to conduct of business obligations when providing investment and ancillary services to clients. The violation of this section often arises when the information provided on the broker’s website was not appropriate or sufficient to allow clients to reasonably understand the nature and risks of the investment service that the company offers.

CySEC ordered the company to take corrective measures within a set framework; otherwise, additional measures will be taken, such as the imposition of new fines, or suspension and/or even the withdrawal of their licenses.

However, it is important to note that fines are usually issued within six months of an inspection, so at the point of the fine, the majority of issues should have already been resolved.