24 April, AtoZ Markets– The Cyprus Securities and Exchange Commission (CySEC) today announces the decision to impose an administrative fine of EUR20,000 to the CIF UR Trade Fix Limited. The CIF is owns and operates the social Forex trading site Tradeo. Why did CySEC imposed a fine and what has the broker to say? AtoZForex.com investigated the case further.
EUR20,000 Tradeo CySEC Fine
The Cyprus watchdog informs the investors by issuing CySEC board decision regarding the fine of EUR20,000 imposed on UR Trade Fix Ltd. The decision was taken in a CySEC board meeting held on March 13, 2017. However, the company gets the fine for being non-compliant with the Investment Services and Activities and Regulated Markets Law of 2007. Moreover, the company provided the investment services of portfolio management. The Cypriot financial regulator states that the firm provided this service without mentioning in its authorization. Also, below you can review the original announcement about the EUR20,000 Tradeo CySEC Fine.
Also, it offers online social trading platform mainly in Forex and CFD instruments via www.tradeo.com. The CIF provides investment and ancillary services in relation to the above financial instruments. Moreover, the firm leverages social information and sharing to improve the trading activity directly.
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Did Tradeo apply for portfolio management authorization?
The Cypriot watchdog has taken the following factors into consideration in reaching CySEC board decision:
- The importance recognised by the legislator to violations of this kind that is reflected by the maximum administrative sanction provided for violations of the law, i.e. EUR 350,000.
- The gravity attributed to the need to make sure that the entities subject to the supervision of the CySEC remain fully compliant with the provisions of the Law and the relevant directives.
- The seriousness of holding a Cyprus Investment Firm (CIF) authorization for providing investment services.
- The importance attributed to the fact that CIFs must act within the limits of their authorization that safeguards their clients’ interests and widely contributes to the strengthening of investor confidence in the financial markets.
- As justifying factors that:i. The Firm has applied for obtaining an authorization for portfolio management.ii. The Firm has not committed a similar violation in the past.
Regarding CySEC Board Decision as of 24 April 2017, the spokesperson of Tradeo.com commented:
"Tradeo (UR Trade Fix Ltd) has applied for obtaining an authorization for portfolio management 8 months ago (15.8.16), and we now expect to receive the extension within the upcoming weeks. We look forward for continued fruitful cooperation with CySEC in the future."
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