The Cyprus Securities and exchange commission has taken any crimes from financial institutions that involve a breach in compliance procedure very seriously . The latest firm to feel the heat is the Traders Trust Capital Markets Ltd, a firm which is fully compliant with the European Union Markets in Financial Instruments Directive (MiFID). The alleged firm is regulated and authorised by the Cyprus Securities and Exchange Commission - Licence number CIF 107/09.
As CySEC fines another FX firm, Traders Trust Capital Markets Ltd has been found guilty of violating article 41 of the CySEC Commission Of Law, enacted since 2009, which has resulted in an administrative fine amounting to 5,000 euros. This penalty is in regard to a misleading statement made by the firm in 2014. Concerning provision of information regarding to "increasing of equity that was required for monitoring its compliance in accordance with Articles 10 and 67 (2) of the Investment Services and Activities and Regulated Markets Law of 2007."
on February 9, the Cyprus regulator held a meeting for the review upon the matter. Afterwards the regulator decided levy a penalty on the defaulting firm, some conditions had to be considered to determine the appropriate fine as stated by the regulators in their report on the case;
- Providing misleading information might hamper the ability of Cypriot regulator exercise its supervisory role to ensure the proper functioning of the firm.
- The seriousness with which the regulator views such violations, reflected in the size of the administrative penalty which was issued for such infringements.
- The importance attached to ensuring that the information provided by natural or legal persons in Cyprus is valid, accurate, and complete in order to achieve the effective exercise of the Law supervisory and regulatory powers.
- As a further moderating factor, the fact that the Company has not committed a similar violation in the past.
- As a moderating factor, the fact that the Company gave adequate explanations regarding the information provided to CySec with regard to the increase of its own of funds.
These points, which serve for and against Traders Trust Capital Markets Ltd where taken into consideration before the regulators came to a decision on the 5,000 euros fine.