The Cypriot regulator, the Cyprus Securities and Exchange Commission has over the past few months issued a series of heavy fines against many investment firms and brokers, both fx and binary options, in its jurisdiction, as part of its renewed campaign to better enforce its regulatory role and better protect customers and the market operation, while at the same time improving its image and reputation as a vigilant watchdog and not a “flag of opportunity for rogue ventures”.
The most recent case of a fine being imposed on a CIF for violating its legal obligations, was decided on at the CySEC board meeting of 14 December 2015, but was announced today and concerns the Cyprus based and regulated broker CommexFX.
CommexFX originally had its CIF license suspended by CySEC in June 2015 and this suspension has subsequently been extended twice, as already reported on binaryoptionswire.com. With the company’s website featuring a message informing visitors of the fact that its license is temporarily suspended for 15 (?!) days, the regulator went ahead to announce its decision for the imposition of an administrative fine of €100.000, because the company did not comply with Section 6(8) of the Investment Services and Activities and Regulated Markets Laws of 2007.
More specifically, according to CySEC, CommexFX was fined because during March and April 2015, it provided the investment service of paragraph 3, Part I, of the Third Appendix of the Law – “Dealing on own account” without an authorisation to provide the said service.
In its announcement, the Cypriot watchdog also points out that in reaching its decision about this fine, it also took into consideration:
“- The importance attributed by the legislator to violations of this kind, which is reflected by the maximum administrative sanction provided for violations of section 6(8) of the Law, in section 141 of the Law, i.e. €350.000.
- The importance attributed to the need to ensure that the persons subject to the supervision of the CySEC comply fully with the provisions of the Law and the relevant Directives.
- The importance of holding a CIF authorization for the investment service of ‘Dealing on own account’.
- The seriousness attributed to the fact that CIFs must act within the limits of their authorization, in order to protect the interests of their clients and contribute widely to the strengthening of investor confidence in the capital markets.”
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.