CySec imposed Administrative fine to a Cyprus Investment Firm and its Director 

Cyprus Securities and exchange commission (cysec)

CySec has issued an announcement to inform that:

At the meeting held on the 11 November 2013, decided to impose the total administrative fine of €100.000 to CIF CommexFX Ltd (‘’the Company’) for violating:

1. Section 28(1) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), in regard to the obligations of sections 12(1) and 18(2) of the Law and of paragraphs 14 and 18(1) of Directive DI144-2007-01 for the Authorisation and Operating Conditions of CIFs.

Section 28(1) refers that a CIF must at all times comply with the conditions under which authorisation was granted as laid down in Part III.

Section 12(1) refers that the persons who effectively direct the business of a CIF shall be of sufficiently good repute and sufficiently experienced as to ensure the sound and prudent management of the CIF.

Section 18 (2) refers to CIF Organisational requirements.

Paragraph 14 of Directive DI144-2007-01 is about:

(1) A CIF is required to to establish, implement and maintain an internal operation manual, which will include all policies, procedures, regulations and mechanisms that the CIF is required to establish, implement and maintain in compliance with the Law and the Directives issued pursuant to the said Law.

(2) The internal operation manual of the CIF is notified to all of its personnel and its provisions are followed literally.

Paragraph 18(1) of Directive DI144-2007-01 is related to the Safeguarding of clients financial instruments and funds

2. Section 32(1) of the Law refers to a CIF obligation to notify the Commission of any changes in the persons who effectively direct its business, along with all information needed to assess whether the new persons to be appointed are of sufficiently good repute and sufficiently experienced, at least one month before the change is brought about.

3. Sections 139(2) of the Law refers to the provision of false, or misleading information or details or documents or forms, or the withholding of material information from any application or notification submitted to the Commission, or within any other process provided for in this Law and the directives issued pursuant to this Law, as well as Regulation (EC) No 1287/2006, in addition to constituting a violation subject to an administrative fine as stated in section 141, it also constitutes a criminal offence punishable pursuant to section 140, without prejudice to section 25.

CySec would like to inform that has also imposed an Administrative Fine to CommexFx Director. 

CySec announcement says that:

At the meeting held on 11 November 2013, decided to impose an administrative fine of €30.000 to Mr Abdel Rahman El Amary ( Director of CIF CommexFX Ltd ) for violating section 139(2) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’).

Section 139(2) of the Law refers to the provision of false, or misleading information or details or documents or forms, or the withholding of material information from any application or notification submitted to the Commission, or within any other process provided for in this Law and the directives issued pursuant to this Law, as well as Regulation (EC) No 1287/2006, in addition to constituting a violation subject to an administrative fine as stated in section 141, it also constitutes a criminal offence punishable pursuant to section 140, without prejudice to section 25.

Source: Cysec – Imposition of an administrative fine to CommexFX Ltd (1) & (2)

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