CySEC Fines iForex Holding company €138.000


CySEC Fines iForex Holding company €138.000 due to the non-compliance with several sections of the law. What did the Director of iCFD say about the fine?

20 February, AtoZForex – The key financial regulator of the Cypriot markets, the Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its official website. The Cypriot watchdog has stated that it decided to inform the public about one of its latest decisions in relation to Cyprus Investment firm (CIF) ICFD Ltd.

CySEC Fines iForex Holding company €138.000

More specifically, the CySEC has mentioned that the Board of regulatory body has taken the chance to inform the public that it has decided to impose a total administrative fine of €138.000 to CIF ICFD Ltd for non-compliance with several legal sections. The Cypriot watchdog has also mentioned that it has made this decision back on 13th of November, 2017.

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According to the official announcement from the CySEC, it has imposed a fine of €138.000 for non-compliance with the following:

  1. Section 6(8) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘the Law’),
  2. Section 28(1) of the Law, as it failed to comply, at all times, with the authorization and operating conditions laid down in sections 18(2)(a) and 18(2)(d) of the Law, as specified in paragraphs 14 and 16 of Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs,
  3. Sections 36(1), 36(1)(a), 36(1)(b) and 36(1)(d) of the Law and paragraphs 4, 6, and 16 of 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.

iCFD Director's Response

The regulator further states that it has provided more details in regards to the case in the Greek version of the announcement. We have reached out to the company in order to get additional insights into the matter. The Managing Director of iCFD Ltd., Or Kapelinsky, has shared the following with us:

"iCFD received today the decision from CySEC and is currently studying it together with its legal advisors. The fine is a result of an audit conducted by CySEC almost three years ago."

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.

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