CySec imposes administrative fine of €8.000 to a CIF
The Cyprus Securities and Exchange Commission (‘CySEC’) has notified the public that has imposed an administrative fine of €8.000 to Reliantco Investments Ltd for the infringement of the Law which provides for the provision of Investment services, the exercise of Investment activities, the operation of regulated markets and other related matters.
More specifically for violations of the following articles of the above Law:
1. €3,000 For violation of Article 36 (1) (c) and Paragraphs 14 and 16 of the Directive DI144-2007-02 of 2012, A CIF must, when providing investment advice or portfolio management, obtain the necessary information regarding the Law 144(I)/2007 client’s or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, his financial situation and his investment objectives so as to be able to recommend the investment services and financial instruments that are suitable to its situation.
2. €3,000 For violation of Article 36 (1) (d) And Paragraphs 15 & 16 of the Directive DI144-2007-02 of 2012, A CIF a CIF must, when providing investment services other than those referred to in paragraph (c), ask the client or potential client to provide information regarding his knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded so as to enable the CIF to assess whether the investment service or product envisaged is appropriate for the client; where the CIF considers, on the basis of the information received under this paragraph, that the investment service or financial product is not appropriate for the client or potential client, the investment firm shall warn the client or potential client, this warning may be provided in a standardised format; where the client or potential client elects not to provide the information regarding his knowledge and experience, or where he provides insufficient information regarding his knowledge and experience, the CIF must warn the client or potential client that such a decision will not allow the CIF to determine whether the investment service or financial product envisaged is appropriate for him; this warning may be provided in a standardised format.
3. €2,000 For violation of Article 40 (2) A CIF may only appoint as tied agents persons who are registered in the public register of subsection (6) or the respective public registers of other member states that have been established pursuant to their corresponding legislation enacted in compliance with Directive 2004/39/EC.
Source: CySec
