General Capital Brokers Limited Faces €120,000 Fine
General Capital Brokers Limited, a Cyprus Investment Firm, was set to pay €120,000. This is according to a report released by the Cyprus Securities and Exchange Commission, a Cyprus regulatory body.
The charges were raised to settle possible violations the broker might have done. The breaches include the country’s Investment Services and Activities and Regulated Markets Law of 2017.
The penalty charged covers the failure to comply with CIF authorization between November 2020 and October 2021.
In addition, the amount will still stand for the broker’s inconsistency in fulfilling the conditions listed for granting an operating license within the mentioned period.
In a more elaborated report, CySEC said General Brokers fell short of the laws on providing information to clients and on general principles.
General Capital Brokers Limited settled the amount as explained by the financial markets supervisor.
“It is noted that all amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC,” the financial markets supervisor said.
Whips On CySEC Trading Companies
Recently, several trading companies have faced fines for violating terms and agreements with the Cyprus security and trading markets watchdog. The body has been thorough in enforcing compliance among market participants.
In the second half of the year 2022, the regulator urged the CFD brokers to advance their practices or face lawful action. The intention of the instruction was to enhance a good environment for the customer and protect them from any overlapped practices.
In August, CySec entered into a settlement agreement of €100,000 with ICC Intercertus Capital. This was an action to settle the exchange’s possible violations concerning the sale of contracts of difference, marketing, and distribution to clients.
F1 Markets and Magnum FX (Cyprus) found themselves in a corner after receiving a penalty of €150,000 in August for the same reasons of non-compliance and violations.
For Magnum FX, the issues raised upon it by the regulator include; failure to meet the requirements for CIF authorization and operating license conditions between January 2019 and July 2020.
The two companies had as well sustained a two-week license suspension issued by CySEC back in 2020.