CySEC has settled with Rodeler Ltd., trading as 24option, for potential violations of the CIF’s authorization requirements, organizational requirements, general principles and information laws.
06 August, 2020 | AtoZ Markets – Rodeler Ltd, trading as “24option” is a registered and licensed investment company in Cyprus since July 11, 2013. It offers consumers the ability to trade CFDs via an online platform. It is located in Agios Athanasios, Cyprus. Rodeler Limited has nine employees in all locations, mainly operates under www.24option.com/eu and www.rodeler.com.
CySEC Reaches €280,000 Settlement With Rodeler Ltd
CySEC has settled with Rodeler for €280,000 regarding a possible breach of Cyprus regulatory obligations. In response to CySEC, Rodeler did not admit or deny the allegations but accepted a fine for settlement. Rodeler paid €280,000 fine to the regulator. Between January 2018 and December 2019, CySEC alleged that Rodeler might breach investment services and activities and regulated market laws, including:
- Article 5(1) of the Law regarding the requirement for CIF authorization.
- Articles 25(1) and 25(3) of the Law, regarding general principles and information to clients.
- Article 22(1) of the Law as to the authorization condition laid down in article 17(6) of the Law, regarding the organizational requirements with which a CIF required to comply.
The Cypriot regulator noted, “CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, may reach a settlement agreement regarding any violation or possible violation, act or omission for which there is reasonable ground to believe that is in breach of the provisions of legislation under the regulatory remit of CySEC.”
UK FCA also banned the broker for using unauthorized celebrity endorsements on social media as part of its marketing. It also noted that it neglected to pay investors, charged undisclosed fees to customers. It did not communicate the risks of CFD trading.
Last month, Rodeler Ltd renounced its CIF license. However, CySEC has not updated anything about CIF license renounce.
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