January 13, 2020, | AtoZ Markets – 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 in September 2019 in regard to the Cyprus Investment Firm (CIF) Solid Financial Services Ltd.
What specifically did Solid Financial Services do wrong?
More specifically, the Cypriot watchdog has informed the public that it decided to impose an administrative fine of €10.000 on Solid Financial Services Ltd. The official announcement from CySEC mentions the non-compliance with the following sections of the law as a reason for issuing the fine:
- Article 9 of Regulation 648/2012, for not ensuring that details regarding derivative contracts concluded were reported to a trade repository.
- Section 41 of the Cyprus Securities and Exchange Commission Law for providing a false statement regarding its reporting to a trade repository of details regarding derivative contracts concluded.
Each of the above-mentioned violations carries a penalty of EUR 5,000, CySEC explains.
In the meantime, we have reached out to the company’s representatives and asked for additional insights into the case. Currently, we are waiting for the response and we will update you once we get new information.
Supervision and compliance
In the past seven years, CySEC has imposed a total of €25.5m in fines on regulated entities. Specifically, the Commission carried out 16 separate investigations back in 2019. This has resulted in the imposition of a total of €18.5m in administrative fines. These fines were imposed, not only on listed companies but also on executive and non-executive members of BoDs. Furthermore, CySEC has suspended the operation of more than 20 investment firms and has closed more than 10 companies.
From the foregoing, it is imperative that CySEC continues to have the appropriate authority. The watchdog also needs to be strengthened with the necessary resources so that it can effectively respond to its very important role as the country’s supervisory authority.
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