CommexFX fined by CySEC – Cyprus Watchdog

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.”

  • Share this post!
Posted by

George Milios

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.

CySEC regulated entities ordered to come clean on any Mossack Fonseca links

CySEC regulated entities ordered to come clean on any Mossack Fonseca links

The story which has been making headlines and even toppling governments recently, namely the leak of the so called Panama Papers, which had demonstrated how a series of suspicious-looking transactions went through Panama, Russia, Switzerland, and Cyprus, with hundreds of millions in unsecured loa...…

Published: Thursday 29 October, 2015

CySEC imposes changes on binary options trading

CySEC imposes changes on binary options trading

Back in December we had reported how CySEC, the market regulator in the jurisdiction of Cyprus which is a very popular hub for binary options brokers, published a consultation paper inviting the investment firms under its supervision to submit their comments and views on a …

Published: Thursday 29 October, 2015

CySEC warning about the circulation of misleading emails

CySEC warning about the circulation of misleading emails

Many brokers and/or investment services firms often engage in dubious and shady practices during their promotional campaigns, which in several instances contain information that is not valid and therefore misleading, thus trying to lure potential customers under false pretenses. Through a...…

Published: Thursday 29 October, 2015

CIF behind Sky FX and Capital Options has license suspended by CySEC

CIF behind Sky FX and Capital Options has license suspended by CySEC

The Cyprus watchdog, the Cyprus Securities and Exchange Commission (CySEC) has announced today that it has decided on 12 February 2016 to suspend the authorisation of the Cyprus Investment Firm ‘Trademarker (Cyprus) Ltd’, with number 151/11. According to the regulator the decision for the...…

Published: Thursday 29 October, 2015