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Edmundas Povilavicius

27 January 2016

Regulation Forex

Breaking: CySEC fines Banc De Binary €350,000

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27 January, AtoZForex.com, London – The financial regulator, CySEC fines Banc De Binary Ltd once again for violation of the Cypriot regulator's legislation. Interesstingly, this time the Cyprus Securities and Exchange Commission (CySEC) has come to the settlement of €350,000 with Banc De Binary.

According to today's announcement of the financial regulator, the settlement has been already paid by the binary options broker. Marking an early fine as the new year just began, Banc De Binary has caught already another case with CySEC. Considering that last year, the binary options broker received numerous of other fines by the Cypriot financial regulator.

FMA's public warning on Banc De Binary

On top of the dealings with the Cyprus Securities and Exchange Commission, just yesterday the New Zealand’s financial market regulator, the Financial Market Authority (FMA) has issued a stern public warning against “Banc De Binary.” Basically, the FMA followed the footsteps of CySEC and the Australian Securities and Investments Commission (ASIC). As both financial regulators have previously issued a warning against the binary options broker. Joining these regulating arms, the New Zealand FMA also advised traders to avoid associating with the binary options firm.

A settlement of €350,000 is already paid

As CySEC fines Banc De Binary again, today it was announced by the financial regulator that a €350,000 settlement was made with the binary options broker. The Cyprus Securities and Exchange Commission indicates that the investigation for which the settlement with Banc De Binary was reached, involved the following, as derived from today's release:

  • Article 28(1) of the Law, according to which a Cyprus Investment Firm (a “CIF”) must, at all times, comply with the conditions under which authorisation was granted as laid down in Part III of the Law and in particular, with the conditions laid down in articles 18(2)(a), (d), (e) and (i) of the Law.
  • b)  Article 36(1), (a), (b) and (d) of the Law relating to conduct of business obligations when providing investment and ancillary services to clients.

Last year's CySEC fines

Having indicated several counts of earlier negative dealings with CySEC, last year Banc De Binary already got imposed with numerous of fines by the Cypriot regulator. Starting off with the incident back in May 2015, when CySEC slammed Banc De Binary with a marked up fine totalling to about EUR 20,000. The settlement was then originated after CySEC's discovery of a dual breach, violating two counts of the Cypriot financial business clauses.

In more detail, the first clause depicted the violations of Article 6 (9) of the Investment Services and Activities and Regulated Markets Law, as the binary options broker was caught offering operational services which were not included in the coverage of its CIF license. The second cluase dealt with the broker's failure to disclose its ties to another business enterprise.

In a time span of three months later, the regulator issued another fine to binary options broker for violations of the prevention and suppression of money laundering and terrorist law. Back then, an administrative fine of €22.000 was imposed on Banc De Binary.

CySEC also clamps down on Rodeler Ltd.

Aside the settlement reached with Banc De Binary, the Cyprus Securities and Exchange Commission has issued today also a fine on Rodeler Ltd, which is the parent company of the respective binary options firms: 24option, GrandOption, 24FX and QuickOption.  

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penalty Banc De Binary CySEC ASIC FMA

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