CySEC fines XFR Financial, as the firm violated a series of regulatory guidelines of the CySEC framework. Which regulatory guidelines were breached and by which brand name?
25 October, AtoZForex – The Cyprus Securities and Exchange Commission (CySEC) has issued a €225,000 fine against XFR Financial Limited. The CySEC regulated parent company of the Forex and CFDs brand names Xtrade as well as XForex. The fine was imposed by CySEC, after a series of violations were reported from XFR Financial Limited.
Which CySEC guidelines did XFR Financial Ltd. violated?
According to CySEC, XFR Financial Ltd. was reported to be non-compliant with the following:
1. The Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘L.144(Ι)/2007’),
2. The Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (‘Directive 1’),
3. 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 (‘Directive 2’).
Based on these violations, the official announcement of CySEC reveals that the penalty of €225,000 is largely appointed to the following breaches:
- Provision of the investment advice without an authorization to do so;
- Failure to comply at all times with the authorization and operating conditions, as laid down in certain rules of the CySEC framework;
- Failure to act in accordance with the best interests of its clients.
XFR Financial Ltd. clarifies CySEC fine
AtoZ Forex has reached to XFR Financial Limited, to hear out both sides of the stories. XFR Financial Limited revealed that the CySEC penalty, only involves the breaches of brand name XForex and not Xtrade:
“We wish to emphasize that the penalty imposed by CySEC was leveled against XForex. Since rebranding, we have implemented even stricter procedures, updating our operations manual to comply with every aspect of CySEC regulation. The stricter procedures will ensure that the oversight for which XForex was penalized will not occur again. We value our relationship with CySEC, with whom, before this incident, we hadn't had any problems regarding compliance and regulations.”
The other Forex and CFDs brand name of XFR Financial Limited, Xtrade earned the AtoZ approved status. After the CySEC regulated broker passed the the strict test on multiple aspects in August this year, which included compliance, order execution, trading platform functions, deposit and withdrawal procedures, sales, and customer service.
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