CySEC Reached €250.000 Settlement with Coverdeal Holdings Ltd

The primary regulatory body of the Cypriot financial industry, CySEC reached €250.000 Settlement with Coverdeal Holdings Ltd. The regulator notes a number of law sections that are possibly breached by the firm under the spotlight.

9 August, AtoZ Markets – The key financial regulator of the Cypriot markets, the Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its website. The regulator has stated that it has reached a settlement with the Cyprus Investment Firm (CIF) Coverdeal Holdings Ltd. for possible violations of The Investment Services and Activities and Regulated Markets Law of 2007.

CySEC's right to reach a settlement

In its official announcement, the CySEC has written:

“The Cyprus Securities and Exchange Commission («CySEC») would like to note the following: CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation.”

The regulator has reached such a settlement with the Coverdeal Holdings Ltd. Specifically, there was an investigation that has involved the assessment of the company’s compliance with a number of law provisions. These have included:

“1. Section 6(8) of L. 144(Ι)/2007, regarding the provision of investment services that are stated in its authorization. 

2. Section 28(1) of L. 144(Ι)/2007, according to which a Cyprus Investment Firm (CIF) must, at all times, comply with the conditions under which the authorisation was granted as laid down in Part III of L. 144(Ι)/2007 and in particular, with the conditions laid down in sections 15, 12(3), 18(2)(a) and 18(2)(j).”

CySEC Reached €250.000 Settlement with Coverdeal Holdings Ltd

Another provision related to the investigation by CySEC is concerning the conduct of business obligations when providing investment and ancillary services to clients. 

As per the announcement from the regulator, the settlement has been reached with the company for the amount of €250.000. 

The Coverdeal Holdings Ltd. has paid the amount of €250.000, while it is highlighted by CySEC that amounts payable from settlement agreements are calculated as income to the Treasury of the Republic. This implies that they are not calculated as revenue for CySEC.

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