CySEC Fines Hoch Capital €30.000 as a result of non compliance with the Directive of Securities and Exchange Commission for the Professional Competence of Investment Firms and the Natural Persons Employed by them.
6 February, AtoZForex – The primary regulator of the financial markets in Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its website. The Cypriot regulator has stated that it made a decision at the meeting held on the 20th November 2017 in regards to the Cyprus Investment Firm (CIF) Hoch Capital Ltd.
CySEC Fines Hoch Capital €30.000
More specifically, the Cypriot watchdog has informed the public that it decided to impose an administrative fine of €30.000 on the CIF Hoch Capital Ltd. The official announcement from CySEC mentions the non compliance with the following sections of the law as a reason for issuing the fine:
Section 36(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2007 and the Paragraph 6, Subparagraph
(2) of the Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the Professional Competence of Investment Firms and the Natural Persons Employed by them.
The regulator further notes that it has also issued this announcement in Greek, where interested parties can find the details and the justification of the CySEC’s decision.
In the meantime, we have reached out to the company’s representatives and asked for additional insights in the case. Currently, we are waiting the response and we will update you once we get new information.
Cyprus Securities and Exchange Commission’s tasks
The Cyprus Securities and Exchange Commission is an independent public authority, responsible for supervising the investment services market and transactions in transferable securities executed in the Republic of Cyprus.
What are Cyprus Investment Firms (CIFs)?
All firms in Cyprus that provide investment services need to be apply for a Cyprus Investment Firm (CIF) license from CySEC. The public can access through CySEC’s website the official register. There investors can see the up-to-date list with all the Cyprus Investment Firms. Currently, the number of Cyprus Investment Firms stands at a total of 219.
In case of malpractice of any of the Cyprus Investment Firms (CIFs), the local watchdog is authorized to impose the administrative and disciplinary sanctions, provided by the law. Other sanctions of the Cyprus Securities and Exchange Commission include ceasing of activities and the ban of financial advisors.
CySEC regulated brokers are eligible to make use of the MiFID ‘passport’. Hence, many brokers registered or attempted to register with CySEC to operate legally across the Eurozone. Coping with the surge of applications, CySEC’s responsibilities is to ensure a healthy development of the securities market in Cyprus.
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