Early in September, Cypriot regulator penalized IQ Option for non-compliance issues. Yet, it has been reported that CySEC reviews IQ Option fine and decides to eliminate one part of the charges. Why did the regulator change its decision?
13 January, AtoZForex – The Cyprus Securities and Exchange Commission (CySEC) announced its decision to impose charges of €180,000 on IQ Option in September. The binary options brokerage was fined due to the non-compliance issues. In particular, failing to adhere to the law on Investment Services and Activities and Regulated Markets, with the Authorisation and Operating Conditions of CIF and with the professional competence of Investment Firms. However, the Cypriot regulator has reviewed its decision and canceled charges related to failing to comply with the best execution practices.
CySEC reviews IQ Option fine
The CySEC made the decision to fine IQ Option on the 5th of September. The total penalty of 180,000 euros was comprised of several charges. One of them was non-compliance with Section 38 of the law. According to that section, the firm has to obtain the best possible results for clients when executing orders. The fine amounted to 20,000 euros. Following CySEC’s announcement, the brokerage requested the regulator to review its decision.
CySEC considered the inquiries and altered its decision. According to the regulator, IQ Option has indicated new data that has justified that the company did not violate Section 38 of the law. As it was adhering to the best execution practices. Indeed, the binary options broker has attracted a number of loyal clients with a solid offering. Yet, despite giving some metrics on its website they haven’t been fully confirmed.
IQ Option and CySEC comments
In regards to the CySEC’s decision, the spokesperson from IQ Option has commented that:
“We are thankful to the CySEC for reconsidering their decision. The Company has never been and will never be guilty of offering anything less than best execution for our clients.”
AtoZForex has reached out to the regulator in order to obtain the confirmation of their decision. Here is the CySEC’s official announcement (available in the Greek language).