Why did CySEC fine Pegase Capital directors?


You can't mess with CySEC! The primary regulator has just imposed a fine of total €200,000 for Pegase Capital Directors. Why did CySEC fine Pegase Capital directors? That's exactly what we will discuss below.

20 October, AtoZForex The key financial regulator of Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has issued a series of financial penalties aimed at the executives of one of the companies. Specifically, the CySEC has imposed fines on the directors of Pegase Capital, the company behind the number of Forex and Binary Options brokers in Cyprus.

CySEC fines Pegase Capital Executives after CIF license withdrawal 

The Cypriot watchdog has also prohibited the owner of the company, Michel Teman from exercising professional activity in relation to the financial sector for the set amount of time.

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The decision of the regulator comes as the conclusion of CySEC’s lengthy scrutiny into the suspected failings at Pegase Capital. The Company has been operating some of the Forex and Binary Options brands under its renounced CIF license. These brands include HelloBrokers, Interactive Option, MTX Plus and pegasecapital.com.

The latest decision of CySEC in regards to the Pegase Capital directors follows the supervisors’ suspension of the Pegase Capital license in March 2016. That time, the Cypriot regulator has also withdrawn the license of the company two months later for the related failings.

Why did CySEC fine Pegase Capital directors?

Now, the CySEC has imposed a fine on Pegase Capital’s officers, which accounts for a total of €200,000. The biggest portion of the fine (€150,000)  goes to Michel Pierre Salomon Teman. Michel Teman is the CEO of the firms and a shareholder with a qualifying holding during the relevant period.

Moreover, Michel Teman has been banned from taking part in any professional activity in regards to the financial sector. CySEC has prohibited him to engage in such activities as of February 6, 2017, for the period of 5 years, until June 2022.

Other senior officers included in the penalty list include Pantelis Ioakim and Giorgos Miltiadous. They were the executive directors of the Pegase Capital during the period under March 2016.

The official announcement from CySEC states that these individuals have failed to have in place the operational requirements to “periodically assess the effectiveness of the policies, arrangements and procedures implemented by the Company for complying with obligations provided in the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), and in Directive DI144-2007-02 of 2012.”

Both Pantelis Ioakim and Giorgos Miltiadous have received a fine of €25,000.

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