PriorFX Scam or reliable? CySEC PriorFX €63000 fine


CySEC Board decided to impose €63000 fine on CIF PriorFX for noncompliance with several norms of the law. Is PriorFX Scam or reliable? 

23 February, AtoZForex - The the Cyprus Securities and Exchange Commission (CySEC) has just issued a fine for one of the Cyprus Investment Firms (CIFs). This time, the CySEC Board has fined CIF PriorFX Ltd €63000 for non-compliance.

PriorFX Scam or reliable? 

On the 23rd of February, the Board of the CySEC has informed the public that it has decided to enforce an administrative fine to PriorFX for noncompliance. According to the official CySEC announcement, PriorFX did not comply with the following:

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The company has failed to comply at all times with the authorization and operating conditions, as laid down in sections 18(2)(a) of the Law and paragraph 14(1) of Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs,

Sections 36(1)(c) and 36(1)(d) of the Law and paragraphs 14(1), 15 and 16(1) of Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the Professional Competence of Investment Firms and the Natural Persons Employed by Them.

Which norms did PriorFX violate?

Furthermore, the CySEC lists the breakdown of the fine (translated from Greek) as follows:

€ 3000 for noncompliance with the Article 28 (1) of the Law, which refers to the policies and procedures of the suitability and compatibility;

€ 30000 for failure to comply with Article 36 (1) (c) of the Law and paragraphs

14 (1) and 16 (1) of the Directive 2. This refers to firm's ability to evaluate clients' experience, knowledge,

financial situation and investment objectives in order to provide the suitable solution.

€ 30000 for failure to comply with Article 36 (1) (d) of the Law and

paragraphs 15 and 16 (1) of the Directive 2. This implies firm's ability to to evaluate clients' experience, knowledge, financial situation and investment objectives in order to provide compatible solution.

As a fact, PriorFX is mainly focusing its efforts on Eastern European markers and Germany. Additionally, broker's CEO Victor Virstza has recently left the company, and now is serving for AFX Group, which is FCA regulated.

I have reached out to the live support of PriorFX for additional insights into the case. The support agent has provided me with the following comment:

"Yes it is true, however its more of a fee not so much fine, its all on the CySEC website and we are placed under the medium risk level so very few cases are in negative to the address of PriorFX."

Previous fine from CysEC

Earlier this month, CySEC has issued a €175,000 fine to the licensed Cyprus Investment Firm (CIF), namely Novox Capital Ltd.

The announcement from the Cypriot regulator about the fine for Novox Capital Ltd. €175,000 emerged just yesterday. Specifically, the CIF company operates Binary Options, Forex and CFDs brokerage brands in Cyprus. These include OptionBit (at website optionbit.eu), ZoomTrader Global (at zoomtraderglobal.com), RoyalPip (at royalpip.com), and NGN Broker (at ngnbroker.com).

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