Cyprus Investment Firm fined for non compliance with an Article of the Market Abuse Regulation
The Cyprus Securities and Exchange Commission (the ‘CySEC’) has issued an announcement to inform that has decided to impose an administrative fine to a Cyprus Investment Firm (CIF).
In accordance with the CySEC’s announcement:
The Board of the Cyprus Securities and Exchange Commission wishes to inform the public that, at its meeting held on the 5th April 2021, decided to impose an administrative fine of €40.000 to CIF London Capital Group (Cyprus) Ltd (the ‘Company’) for non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, as further specified in Articles 2 and 3(8) of the Delegated Regulation (EU) 2016/957 supplementing Regulation (EU) 596/2014, as it does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, which also ensure the monitoring those.
Article 16(2) of Regulation (EU) 596/2014 on market abuse provides that: Any person professionally arranging or executing transactions shall establish and maintain effective arrangements, systems and procedures to detect and report suspicious orders and transactions. Where such a person has a reasonable suspicion that an order or transaction in any financial instrument, whether placed or executed on or outside a trading venue, could constitute insider dealing, market manipulation or attempted insider dealing or market manipulation, the person shall notify the competent authority as referred to in paragraph 3 without delay.
Full details/justification of the CySEC’s decision are/is available in the Greek text of the announcement, that can be found on the following link: https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=476321bf-8245-48ff-8196-c4de1b76773a