Forex TB Pays €270k to CySEC to Settle Possible Violations

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The Cyprus Security and Exchange Commission (CySEC) says Forex TB, a contract for difference (CFD) broker, has paid € 270,000 to resolve its possible breaches of the Investment Services and Activities and Regulated Markets Act of 2017.

CySEC, which announced the compromise on Thursday, said the decision was reached by its Board on May 23rd.

The Cyprus financial industry watchdog explained that the investigation for which the settlement was reached involved an assessment of the Cyprus Investment Firm’s (CIF) compliance record.

The record covers the period between April 2020 and December 2021.

The assessment was a consequence of the internal review report of Forex TB published in April 2021.

CySEC further clarified that its investigation was to assess the CIF for Section 5 (1) of the Investment Services Act regarding the requirement of CIF authorization.

It also had to cover, among others, Article 24 (1) of the Law regarding conflicts of interest.

CySEC explained, “The agreement reached with the Company [Forex TB]for the possible infringements, it is for the amount of € 270,000 that the Company has already paid.

“It is noted that the sums due to settlement agreements are calculated as revenue (revenue) to the Treasury of the Republic and do not constitute revenue of CySEC.”

Compromises and Sanctions

CySEC has reached a number of compromises with various entities this year.

The Cryptot regulator announced last Tuesday that it had reached a € 150,000 settlement with the forex and CFD broker Credit Financier Invest (CFI) Limited for a possible breach of enforcement regulations on money laundering prevention and terrible financing.

Last month, CySEC agreed to a € 100,000 deal with Finteractive Limited, the operator of trademark FXVC, for possible regulatory violations.

Meanwhile, earlier this month, the market supervisor struck administrative sanctions on current and former directors of Maxigrid.

Maxigrid operates retail FX and CFD brands Dualix and AGM Markets.

In addition, the regulator slapped a fine of € 200,000 on Roy Almagor. Almagor is a shareholder and former Non-Executive Chairman of the Board of Maxigrid.

In early June, CySEC withdrew its Investors Compensation Fund (ICF) membership from two companies, Hoch Capital Limited and ED&F MAN Capital Markets CEEMA Limited.

The memberships of the two companies were revoked after the withdrawal of their CIF licenses.

Hoch Capital’s license was revoked after the company voluntarily decided to give it up.

Meanwhile, CySEC in a decision taken on March 28 initiated the compensation payment process for Maxigrid Limited’s customers under the ICF.

The Ciproit financial body provides protection to the deposits of individual investors under the ICF scheme.

The compensation scheme allows protection of up to € 20,000, to protect investors in a situation where CIF goes bankrupt.

The Cyprus Security and Exchange Commission (CySEC) says Forex TB, a contract for difference (CFD) broker, has paid € 270,000 to resolve its possible breaches of the Investment Services and Activities and Regulated Markets Act of 2017.

CySEC, which announced the compromise on Thursday, said the decision was reached by its Board on May 23rd.

The Cyprus financial industry watchdog explained that the investigation for which the settlement was reached involved an assessment of the Cyprus Investment Firm’s (CIF) compliance record.

The record covers the period between April 2020 and December 2021.

The assessment was a consequence of the internal review report of Forex TB published in April 2021.

CySEC further clarified that its investigation was to assess the CIF for Section 5 (1) of the Investment Services Act regarding the requirement of CIF authorization.

It also had to cover, among others, Article 24 (1) of the Law regarding conflicts of interest.

CySEC explained, “The agreement reached with the Company [Forex TB]for the possible infringements, it is for the amount of € 270,000 that the Company has already paid.

“It is noted that the sums due to settlement agreements are calculated as revenue (revenue) to the Treasury of the Republic and do not constitute revenue of CySEC.”

Compromises and Sanctions

CySEC has reached a number of compromises with various entities this year.

The Cryptot regulator announced last Tuesday that it had reached a € 150,000 settlement with the forex and CFD broker Credit Financier Invest (CFI) Limited for a possible breach of enforcement regulations on money laundering prevention and terrible financing.

Last month, CySEC agreed to a € 100,000 deal with Finteractive Limited, the operator of trademark FXVC, for possible regulatory violations.

Meanwhile, earlier this month, the market supervisor struck administrative sanctions on current and former directors of Maxigrid.

Maxigrid operates retail FX and CFD brands Dualix and AGM Markets.

In addition, the regulator slapped a fine of € 200,000 on Roy Almagor. Almagor is a shareholder and former Non-Executive Chairman of the Board of Maxigrid.

In early June, CySEC withdrew its Investors Compensation Fund (ICF) membership from two companies, Hoch Capital Limited and ED&F MAN Capital Markets CEEMA Limited.

The memberships of the two companies were revoked after the withdrawal of their CIF licenses.

Hoch Capital’s license was revoked after the company voluntarily decided to give it up.

Meanwhile, CySEC in a decision taken on March 28 initiated the compensation payment process for Maxigrid Limited’s customers under the ICF.

The Ciproit financial body provides protection to the deposits of individual investors under the ICF scheme.

The compensation scheme allows protection of up to € 20,000, to protect investors in a situation where CIF goes bankrupt.

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