CySEC reached a settlement agreement with a Cyprus Investment Firm
The Cyprus Securities and Exchange Commission (CySEC) has issued an announcement on 7 October 2022 to inform 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 breach of the provisions of legislation under the regulatory remit of CySEC.
Α settlement has been reached with the CIF Crowd Tech Ltd («the Company») for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 – L.87(I)/2017 («the Law») and of the Regulation (EU) 600/2014 on markets in financial instruments.
More specifically, the investigation for which the settlement was reached, involved assessing, for the period January 2020 until June 2021, the Company’s compliance with:
- Article 5(1) of the Law, regarding the requirement for CIF authorization.
- Αrticle 22(1) of the Law as to the authorisation condition laid down in article 17(2) of the Law, regarding the organisational requirements a CIF is required to comply.
- Article 25, paragraph (1) and (3), of the Law, regarding general principles and information to clients.
- Article 42 of the Regulation 600/2014 as to complying with paragraph 5 of the CySEC’s Directive DI87-09 for the Restriction on the Marketing, Distribution, and Sale of Contracts for Difference (CFDs) to Retail Clients (DI87-09), regarding the prohibition of participation in circumvention activities.
The settlement reached with the Company, for the possible violations, is for the amount to €230.000. The Company has paid the amount of €230.000.
It is noted that all amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC.