CySEC reached a settlement with a Cyprus Investment Firm for possible violations 

The Cyprus Securities and Exchange Commission (CySEC) has announced that has reached a settlement agreement with a Cyprus Investment Firm (CIF) regarding possible violations of the relevant legislation.

In accordance with the CySEC’s Board decision dated 09^th of March 2020 that was announced on the 29^th of May 2020, the CySEC noted that:

CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, may reach a settlement agreement regarding any violation or possible violation, act or omission for which there is reasonable ground to believe that is in violation of the provisions of legislation used by CySEC to supervise its obliged entities.

CySEC reached a settlement agreement with the CIF Indication Investments Ltd («the Company») for possible violations of the Investment Services and Activities and Regulated ,Markets Law of 2017 – L.87(I)/2017 («the Law»). The investigation, which took place at the m,Company’s premises on the 9th of November 2018, related to the following regulatory requirements supervised by CySEC:

1. Articles 28(1)(a), 28(7) and 28(8) of the Law, regarding the CIF’s obligation to execute morders on terms most favorable to the client.
2. Articles 22(1) regarding the conditions for CIF authorisation. Explicitly, articles 17(3)(a) and 17(4) of the Law, regarding the CIF’s obligation towards its organisational requirements.
3. Article 40 of Regulation (EU) No 600/2014, regarding ESMA temporary intervention powers. Explicitly, ESMA’s Decision (EU) 2018/796, for the temporary restriction on contracts for differences in the Union in respect of retail clients. Specifically:
   (a) ESMA’s Decision (EU) 2018/796, regarding the provision of maximum leverage to retail mclients, up to 1:30, at specified products.
   (b) Article 2 of the ESMA’s Decision (EU) 2018/796, regarding the margin close-out protection; a requirement to market, distribute or sell CFDs to retail clients.

The settlement reached with the Company, regarding the possible violations of its regulatory obligations, amounts to €160.000. The Company settled the amount of €160.000.

All amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC.

Source: CySEC

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