11 July, AtoZForex – After Friday news of RoboOption closing and Option Rally firing most of its staff, another breaking news came in about different binary options firm. The binary options operator Option Fair fined €138,000 by CySEC. According to the regulator, the fine was a result of multiple non-compliance issues.
What is Option Fair?
Option Fair is the operator of the binary options brokerage firm TechFinancials. According to the description on the website, it’s an innovative binary options trading platform provider. The firm is owned and operated by the Cyprus-based CIF B.O. Tradefinancials Ltd. The firm is regulated by the Cyprus Securities and Exchange Commission (CySEC).
On the website of the operator, it is stated that the Option Fair strives to provide traders with the opportunity to trade in various assets. Also, the platform is said to be user-friendly and suitable for all levels of investors.
Why was the Option Fair fined €138,000 by CySEC?
According to the official statement of the CySEC, the total sum of the issued fine is a result of multiple violations. Let’s look into the details given in the watchdog’s report.
€3,000 – fine was given for the failure to apply proper procedures and policies in order to ensure compliance with the regulator’s requirements.
€20,000 – this part of the fine was added for the company’s failure to take steps towards avoiding undue operational risks in outsourcing activities. According to the regulator, Option Fair did not supervise sufficiently the activities of the third party to which the firm outsourced some of its services.
€30,000 – added by the Cypriot watchdog for the company failing to serve the best interests of the customers in the frame of trading bonuses allocation.
€30,000 – one more similar fine added to the list for non-compliance with the requirements of the fair advertising. The further explanation included that the information on the website of B.O.Tradefinancials Ltd had to be clearer and more transparent.
€15,000 – penalty for the Option Fair failing to inform its customers about the risks related to their trading activities.
€40,000 – the largest fine from the list is related to the firm’s non-compliance issue with the Cypriot Securities legal requirement to assess customers’ suitability. According to the CySEC’s rules, the clients of firms regulated by the watchdog have to provide data regarding their experience and knowledge in trading and investment.
In its official statement regarding the issue, TechFinancials stated:
“The Company has implemented measures to ensure these breaches do not recur and expect to have fully implemented any necessary corrective actions by 5 September 2016, as required by CySEC. The Company does not anticipate that the fine will have a material impact on the results for the current financial year and still expects to meet market expectations.”
The AtoZForex team reached out to the Option Fair for the comments on the case. The request is still pending.
See also: CONSOB fines TechFinancials
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