The Cyprus Securities and Exchange Commission (CySEC) has imposed a €50,000 fine on IC Markets (EU) Ltd for violations of the Investment Services and Activities and Regulated Markets Law. The decision was made during a board meeting on July 1, 2024. This fine pertains to breaches of the Investment Services and Activities and Regulated Markets Law.

CySEC Hits IC Markets

The company has been fined €30,000 for failing to ensure the best possible outcomes for its clients when executing orders. According to the regulator, IC Markets (EU) Ltd did not adequately consider factors such as price and size in its execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term process.

Additionally, the company faces a €10,000 fine for not establishing and implementing effective measures to comply with its obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term regarding client order execution.

CySEC Decision for the imposition of an administrative fine to company IC Markets (EU) Ltdhttps://t.co/9tXO5YgTJg

CySEC Decision for the imposition of an administrative fine to company IC Markets (EU) Ltdhttps://t.co/KEGgzzDdbC

— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) September 4, 2024

Another €10,000 fine was imposed for not providing clear and comprehensive information about costs and charges. This failure hindered clients' ability to fully understand the cost implications and their effect on investment returns.

'“IC Markets (EU) Ltd strongly refutes the decision made by the Cyprus Securities and Exchange Commission (CySEC). The fines are, in our view, unjustified and fail to reflect the true operational standards of our Company,” IC Markets responded.

“We firmly disagree with CySEC’s conclusions, particularly the assertion that we did not take sufficient steps to achieve the best possible execution results for our clients,” the company continued. “IC Markets has always maintained robust internal systems, including comprehensive ex-ante checks on pricing, and has consistently taken prompt corrective actions where necessary.”

Regulator’s Earlier IC Markets Fine

Earlier, IC Markets (EU) was fined €200,000 by the CySEC for breaching leverage rules, as reported by Finance Magnates. The penalty follows allegations that the broker offered leverage up to 1000:1 by using an offshore entity, while EU regulations limit leverage to 30:1 for FX and CFD brokers.

IC Markets disputes the decision, claiming that CySEC relied on biased testimony from a former employee and ignored audited evidence. The company plans to appeal, criticizing the regulatory process for lacking impartiality and transparency.