CySEC Fines FXGM Parent Depaho Ltd €270,000 for Compliance Failures


Cyprus watchdog CySEC has announced a fine of €270,000 settling charges against Depaho Limited, parent of Retail FX broker FXGM. This is the second time the broker is facing fines from the regulator for compliance failures.

September 29, 2020 | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) announced imposing a fine in the amount of €270,00 on FXGM’s parent company, Depaho Limited.

CySEC fines Depaho again for compliance lapses

The Cyprus financial regulator found that the contract for difference (CFD) and forex broker Depaho violated investment regulations. CySEC revealed that Depaho violated organizational requirements, as well as CIF authorization provisions, order execution requirements, principles, and information of clients and had a conflict of interest.

Following the CySEC investigation, the regulator discovered that the violations occurred between January 2018 and July 2019. As AtoZ Markets reported, Depaho faced similar fines in 2015 from the Cypriot regulator for non-compliance of several regulatory requirements.

CySEC recent activity

Recently, CySEC has settled with Rodeler Ltd., trading as 24option, for potential violations of the CIF’s authorization requirements, organizational requirements, general principles, and information laws. The Cypriot watchdog has also settled with Tradernet, and Xtrade Europe Limited.

“CySEC…has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the financial regulator said.

Meanwhile, the Polish financial regulator KNF warned against Depaho in 2019 for offering services in the country without any authorization from the body.

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

    Share Your Opinion, Write a Comment