CySec fines SpotOption Exchange Ltd 

The Cyprus Securities and Exchange Commission (CySec) has issued an announcement to inform investors that the Commission has imposed an administrative fine of €10.000 on the Cypriot Investment Firm (CIF) SpotOption Exchange Ltd for non-compliance with the following the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘the Law’).

According to CySec, the administrative fine imposed on the Company is broken down as follows:

Α) €5.000 for non-compliance with Section 28(1) of the Law as it failed to comply at all times, and specifically during the period of 8.5.2014 -18.6.2014, with the authorization and operating conditions, as laid down in Section 18(2)(c) of the Law- continuity and regularity in the performance of investment services, by employing appropriate and proportionate systems, resources and procedures.

B) €5.000 for non-compliance with Section 36(1) of the Law as it failed, in June 2014, to act fairly, honestly and professionally, in accordance with the best interests of its clients.

Section 28(1) of the Law refers to: 

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

(2) A CIF must carry out regular internal review of the conditions stated in sections 18 and 19 to ensure that they remain appropriate, effective, comprehensive and proportionate to the nature, scale and complexity of the CIF’s business activities especially in terms of the nature and the range of the investment services and activities it undertakes in terms of the said business activities. In the opposite case, the CIF must take appropriate measures to correct possible deficiencies.

Section 189(2)(c) of the Law refers to:

A CIF must take reasonable steps to ensure continuity and regularity in the performance of investment and ancillary services and activities, by employing appropriate and proportionate systems, resources and procedures.

Section 36(1) of the Law refers to: 

Conduct of business obligations when providing services to clients.

Source: CySec – Decision 12-14-015 for the imposition of administrative fine to SpotOption Exchange Ltd

 

 

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