The Cyprus Securities and Exchange Commission (CySEC) has reached a €50,000 settlement with Noteris Services Ltd for potential violations of investment services laws.
Noteris is involved in recruiting employees for the IronFX brokerage brand, which is licensed under Notesco Financial Services Ltd. in Europe.
Cyprus Securities Watchdog Fines Noteris Services Ltd €50,000 in Settlement
The settlement, announced today (Tuesday), pertains to an inspection conducted between May 2022 and November 2022. The inspection assessed the company's compliance with authorization requirements under Article 5 (1) of the Investment Services and Activities and Regulated Markets Law of 2017.
According to CySEC , the settlement was reached under article 37 (4) of the Cyprus Securities and Exchange Commission Law of 2009, which allows the regulator to settle with companies for any violation, possible violation, act, or omission that may breach the provisions of legislation under its purview.
Noteris Services Ltd has already paid the €50,000 settlement amount, which will be considered revenue for the Treasury of the Republic and not income for CySEC.
Less than a month ago, another company from Cyprus received the same penalty. Fiduserve Asset Management Ltd, the investment fund manager, had to pay for lapses in investor protection and improper reporting during the period from 2018 to 2021.
CySEC Slammed Firms with €2.2 Million in Fines in 2023
In 2023, CySEC demonstrated its commitment to upholding regulatory standards and safeguarding investors by conducting comprehensive inspections and imposing substantial fines on non-compliant entities. The regulatory body carried out 700+ on-site and remote audits of supervised firms, focusing on ensuring adherence to regulations and protecting the interests of investors.
CySEC's Market Surveillance and Investigations Department showcased its diligence by completing 42 investigations throughout the year, with an additional 48 cases still in progress at the close of 2023.
Due to the supervisory audits, CySEC levied administrative sanctions amounting to a staggering €2.2 million in 2023 alone. Remarkably, a single investment firm was slapped with a €1 million fine, underscoring the gravity of their regulatory breaches.
While CySEC's actions are commendable, they pale in comparison to the regulatory measures taken by other international bodies. The British FCA took a more aggressive stance, canceling licenses for 1,266 unauthorized firms and imposing record fines totaling £52,802,900 during the same period.
However, the United States remains the undisputed leader in this regard, with the Securities and Exchange Commission and the Commodity Futures Trading Commission collectively imposing financial penalties surpassing $9 billion.
