CySEC Fines Centralspot Trading Ltd €50,000


As part of its regulatory responsibilities, CySEC needs to ensure the maximum protection of investors across the island. In its latest bid to bring justice, CySEC Fines Centralspot Trading Ltd €50,000. Where did the company go wrong?

15 December, AtoZForex The key regulatory body of Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has published the new announcement on its website. The Cypriot watchdog has issued a public note, where it has informed the public about its decision to impose a fine on one of the Cyprus Investment Firms.

CySEC Fines Centralspot Trading Ltd €50,000

CySEC usually issued fines to brokerages and other CIFs on the island as a part of its regulatory actions. This time, the company that has received the fine is CIF Centralspot Trading Ltd.

Multibank
4.9/5
Multibank Review
Visit Site
eToro
4.9/5
eToro Review
Visit Site
Capital.com
4.8/5
Capital.com Review
Visit Site

The CySEC has held the meeting on the 13th November 2017, where the Board of the Cyprus Securities and Exchange Commission decided to impose a total administrative fine of €50,000 to CIF Centralspot Trading Ltd.

The fine has appeared as a result of noncompliance with the following, as per the CySEC official announcement:

  1. Section 28(1) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘the Law’).

What exactly did Centralspot Trading fail to do?

The regulator states that the brokerage has failed to comply with the authorization and operating conditions that are laid down in section 18(2)(d) of the Law. To be specific, the CIF Centralspot Trading Ltd has failed to effectively supervise or take any reasonable steps to prevent any unjustified deterioration in operational risk, while assigning activities to third parties.

Furthermore, the CySEC states that the company has failed to comply with:

  1. Section 36(1)(a) of the Law and paragraph 6(2) of Directive DI 144-2007-02 of 2012 for the Professional Competence of Investment Firms and the Natural Persons Employed by Them. Specifically, information sent to clients and prospective clients through its website marketing materials were not, at all times, precise, clear and not misleading.

We have reached out to the representatives of the brokerage to get deeper insights into the case. Currently, we are awaiting the response and we will update you once the new information will be available.

You can find the original announcement from CySEC here.

Think we missed something? Let us know in the comments section below.

Leave a Reply

Your email address will not be published. Required fields are marked *