16 March, AtoZ Markets – The Board of the Cyprus Securities and Exchange Commission (CySEC) has announced its decision, made at a meeting held in December 14 2015, to impose a total administrative fine of €10,000 on the CIF SpotOption Exchange Ltd. for non-compliance with the Investment Services and Activities and Regulated Markets Law of 2007.
The fine is part of an extensive review that CySEC is making of all major licensed financial firms in Cyprus. The €10,000 fine amounts to a fairly small warning, given that the financial regulator has already issued a total of fines in the range of €300,000+, on CIF licensed brokers for wrongdoings.
SpotOption Exchange responds
AtoZ Markets reached out to SpotOption Exchange for a comment, and the General Manager, has disclosed the following response of SpotOption Exchange to the public:
The fine refers to a temporary malfunction of the pricing engine of a newly introduced product in May 2014. The company took all necessary actions to rectify the price engine malfunction and to prevent such events recurring in the future. The CySEC noted positively in its decision the control measures adopted by the company to prevent the recurrence of such events and the fact that the company had never previously been fined.
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CySEC fines SpotOption for non-compliance
The administrative fine to SpotOption is broken down as follows:
€5,000 for non-compliance with Section 28(1) of the Law as it failed to comply at all times, and specifically during the period from 8th of May, 2014 to 18th of June, 2014, with certain authorization and operating conditions: continuity and regularity in the performance of investment services, by employing appropriate and proportionate systems, resources and procedures.
€5,000 for non-compliance with Section 36(1) of the Law as it failed, in June 2014, to act fairly, honestly and professionally, in accordance with the best interests of its clients.
As CySEC fines SpotOption, in reaching the decision, the regulator has taken into consideration the number of the administrative sanctions provided in the legislation, the seriousness attributed to the CIF’s obligation, and if the Company has not committed a similar violation in the past. In addition, the adoption of corrective measures on behalf of SpotOption and the importance attributed to the need to establish and implement effective procedures and arrangements were also considered.
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