CySEC Fines LeadCapital Markets €30,000 due to the fact that LeadCapital did not act in a fair and professional way in regards to the best interests of its clients in Romania. This has happened in the period between August 2016 and July 2017.
5 April, AtoZForex – The key financial regulator of the Cypriot market, the Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its official website. The watchdog has informed the public that it has issued a €30,000 fine to LeadCapital Markets Ltd. The entity is a parent company of the Retail Forex brokers Trade.com and FINEXO.
CySEC Fines LeadCapital Markets €30,000: Reasons
As per the official CySEC’s note, the fine has been imposed due to the fact that LeadCapital did not act in a fair and professional way in regards to the best interests of its clients in Romania. This has happened in the period between August 2016 and July 2017.
CySEC has also noted that when deciding on a fine size, it has taken into consideration the fact that the company has cancelled the operation of its branch in Romania. Moreover, the CySEC has accounted that the company has introduced some changes to its management.
The formal announcement on the website of CySEC reads:
“The Board of the Cyprus Securities and Exchange Commission (‘the CySEC’) would like to inform the public that, at the meeting held on 8 th January 2018, decided to impose an administrative fine of €30.000 to the CIF LeadCapital Markets Ltd for non-compliance, during the period between end July/beginning August 2016 until July 2017, with section 36(1) of the Investment Services and Activities and Regulated Markets Law of 2007 as in force, as it did not act honestly, fairly and professionally in accordance with the best interests of its clients in Romania.”
How did CySEC Decide on Fine Size?
The CySEC further goes into details regarding the fine. It states that the firm in question has allowed the provision of services by its branch in Romania before the registration of the said brand in the public register that is held by the supervisory authority of Romania.
Furthermore, in determining the amount of the said fine, the CySEC has paid attention to the following specifics:
- The importance attributed by the law to violations of this kind, as reflected in the maximum administrative sanction provided in the Law.
- The importance attributed to ensuring that the persons subject to the supervision of CySEC comply fully with the provisions of the Law.
- The importance attributed to the obligation of CIFs to act honestly, fairly and professionally in serving the best interests of their clients.
- The importance attributed to the protection of the interests of clients of CIFs.
In case you would like to review the announcement from the CySEC, please find it here.
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