The Cyprus Securities and Exchange Commission (CySEC) has reached a €150,000 settlement with Naga Markets Europe Ltd. for various regulatory violations between January 2021 and April 2022. The Cyprus-licensed company is part of the publicly listed NAGA Group in Germany and operates the trading brand of the same name.

Naga Markets Europe Fined €150,000 by CySEC for Regulatory Violations

According to the CySEC announcement, the settlement follows a desk-based review and investigation into NAGA’s compliance with several key articles of the Investment Services and Activities and Regulated Markets Law.

Specifically, CySEC found possible violations relating to NAGA’s authorization conditions, organizational requirements, information provided to clients, suitability and appropriateness assessments, best execution of client orders, and product intervention rules.

While details of the specific failures were not disclosed, the fine reflects CySEC's stricter approach recently to monitoring standards and enforcement actions within the Cyprus financial sector.

Last week, NAGA announced its intention to merge with Capex.com, anticipating a combined revenue of $250 million for the merged entity. The merger is expected to be completed before the end of the first half of 2024. Meanwhile, the broker also published its official results for the first half of 2023, which were better than the preliminary results. According to official data, the company earned €25.2 million, nearly €5 million more than the figures published in July.

Risin Number of CySEC Sanctions

Naga Markets, which received its CIF license from CySEC in 2013, has already paid the €150,000 settlement amount to the Cypriot Treasury. The company joins several Cyprus-regulated brokers to be sanctioned financially over the past year.

Just yesterday (Thursday), Cyprus' financial regulatory body imposed a €50,000 fine on BCM Begin Capital Markets for potential breaches of local regulatory standards. The company has settled the fine. Additionally, a few weeks earlier, Titanedge Securities Ltd, which operates the CFD brokerage brands TradeEU.com and Titan Edge, was penalized €90,000 for likely compliance issues spanning from October 2022 to July 2023.

In another recent development, the Cyprus financial oversight authority took action against TriumphFX, a regulated retail broker. The authority suspended the shareholder rights due to management concerns, centering on the sole indirect shareholder, Chong Chun Hseung. This action follows previous warnings from Asian regulatory bodies issued years earlier.

CySEC noted that settlement agreements are based on the particular circumstances of each case. Firms are expected to take corrective actions and strengthen internal procedures to ensure full compliance in the future.