The key Cypriot markets' regulator has published a document on its website stating it has decided to fine Spot Capital Markets Ltd. Why did CySEC Fine Spot Capital Markets €50.000? Let's find out.
23 January, AtoZForex – The Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its official website. The primary financial services regulator in Cyprus has decided to inform the public about its decision to impose a fine on one of the industry participants.
This time, the Cypriot supervisor has imposed a fine of €50.000 to the Cyprus Investment Firm (CIF) Spot Capital Markets Ltd.
Why did CySEC Fine Spot Capital Markets €50.000?
The official announcement from the Cypriot regulator states:
“The Board of the Cyprus Securities and Exchange Commission (‘CySEC’) would like to inform the public that, at the meeting held on 20thNovember 2017, has decided to impose a total administrative fine of €50.000 to CIF Spot Capital Markets Ltd for non compliance within the period of 1st January 2016 to 30th June 2016.”
Furthermore, the Cypriot regulator has listed the specific section of the law, with which Spot Capital Markets failed to comply. Specifically, the CySEC listed two sections of the law:
“Section 36(1) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time;
Section 36(1)(a) of the Law and Paragraph 6, subparagraph (2) of the 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. Full details/justification of the CySEC’s decision are/is available in the Greek text of the announcement.”
We have reached out to the company representatives for an additional commentary on the case. However, we did not get any response yet. We will update you once the new information will be known.
CySEC Role
CySEC is an independent public authority, responsible for supervising the investment services market and transactions in transferable securities executed in the Republic of Cyprus.
The regulatory body’s headquarter is in Nicosia and consists out of a five-member Board; the Chair, the Vice-Chair, and the three remaining members. The Council of Ministers appoints the Board members, after the proposal of the Minister of Finance. Meanwhile, each board member’s service term is five years.
All firms in Cyprus that provide investment services need to apply for a Cyprus Investment Firm (CIF) license from CySEC. The public can access through CySEC’s website the official register. There, investors can see the up-to-date list of all the Cyprus Investment Firms. Currently, the number of Cyprus Investment Firms stands at a total of 219.
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