The Cyprus Securities and Exchange Commission (CySEC) has slapped administrative sanctions on current and former directors of Maxigrid, which operates retail FX and CFD trading brands Dualix and AGM Markets.
Announced on Friday, the financial market supervisor slapped a monetary penalty of €200,000 on Roy Almagor, who is a shareholder and former Non-Executive President of Maxigrid’s Board. Additionally, he is facing a five-year ban from taking a management position in a Cyprus Investment Firms (CIFs).
Jekaterina Pedosa, an Executive Director of the company, received a €10,000 administrative fine, along with a five-year management ban. Katerina Papanicolaou, another Executive Director, and Nikolai Monogarov, an ex-Executive Director, also received an individual ban of two years from taking any CIF management role.
The regulatory decision against the directors came after an invention against the non-compliances of Maxigrid.
“Maxigrid's Board of Directors was found to have acted in violation of this article over its failure to define and take responsibility for the implementation of arrangements that ensure the effective and prudent management of the Company, in a way that promoted the integrity of the market and the interest of its clients,” CySEC press release stated.
“Specifically, during the period between 4th September 2020 and October 2021, the principle of governance arrangements, which is set out in section 10(1)(b)(ii) of the Law, was not applied.”
A Troubled Brokerage Operator
The Cypriot regulator withdrew Maxigrid’s license last February after the company failed to comply with multiple mandatory requirements. Moreover, it led to the suspension of the services of Maxigrid’s trading brands.
Furthermore, earlier this month, CySEC initiated the compensation payment process for the clients of Maxigrid Ltd under the Investors Compensation Fund, mentioning the broker is “unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so.”
