January 27, AtoZForex.com, Paris - Rodeler Limited, the parent company of 24option pays CySEC fine of €156,000, for breaching multiple counts of CySEC's regulation. The Regulator and the Company had been discussing the matter at hand for some time before the Board reached its decision on October 12, 2015. On a different note, CIF Rodeler Limited is not only the parent company of 24option, but also possesses over the financial firms GrandOption, 24FX and QuickOption.
As the parent company of 24option pays CySEC fine, the Cyprus Securities and Exchange Commission shows again that it is undertaking great effort to clamp down on illicit or wrongdoing in the Cypriot financial market. Continuing from last year, CySEC is determined to exercise effective supervision over its jurisdiction, for the sake of ensuring investor protection and a healthy development of the securities market.
Rodeler Limited failed to comply
According to the Regulator's letter, the company Rodeler Ltd., failed to comply with the following legislation(s) listed in the first page:
- The Investment Services and Activities and Regulated Markets Laws
- The Prevention and Suppression of Money Laundering and Terrorist Financing Law
Breakdown of €156,000 settlement
What's more, as if being targeted by the financial regulator under an ethics review didn't create undesirable media coverage for the Company, the letter following the Board's decision includes a breakdown of the amount per section violated; in other words, stating for other companies how costly it would be to do the same -although it can still vary from company to company and on the gravity of the violation. Nonetheless, some of the more costly violations include:
- €40.000 - inadequately assessing customer's needs,
- €30.000 - misconduct in regards to clients' bonuses,
- €30.000 - misleading advertisement
- €20.000 - mismanaged operational risk(s)
- €15.000 - inappropriately informing potential clients
Such violations, or non-compliance behavior in this case, earned the Company a hefty fine of €156,000 -by any means a significant amount.
Despite the fact that Rodeler Ltd pays a €156,000 settlement, not all hope is lost for CIF firm; on the third and last page of the fine announcement, the Regulator stated having taken into consideration some of the "corrective measure/actions on behalf of the Company", thus leaving this whole review news as the perfect opportunity for them to learn and grow, and in the future avoid, or implement in this case, actions to comply with their Regulator's laws.
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