€270,000 Drawn From Forex TB To Settle A Violation Charge
Forex TB, a contract for difference (CFD) broker settled the €270,000 charged for violating the Investment Services and Activities and Regulated Markets Law of 2017. The clearance of the charge was brought to light by the Cyprus Securities and Exchange Commission (CySEC), a Cyprus financial regulatory body.
The board decided to settle the fine of the platform on May 23. The cause that triggered the disclosure of the indemnification was the conducted investigation that involved an assessment of the Cyprus Investment Firm’s (CIF) compliance record. The Cypriot, a financial industry watchdog confirmed the information.
The leading record was scheduled between April 2020 and December 2021. The evaluation was the main channel in reaching out to the internal audit that was released in April 2021 by the Exchange.
The inspection also pointed to the requirement of CIF authorization according to Article 5(1) of the Investment Services Law.
CySEC explained, “The settlement reached with the Company [Forex TB], for the possible violations, is for the amount of €270.000, which the Company has already paid.
“It is noted that the amounts due to settlement agreements are calculated as revenue (income) to the Treasury of the Republic and do not constitute income of CySEC.”
CySEC Hawking Tactics
CySEC seems to have been actively alert in its role. The company has scrutinized a series of entities curbing the violation of the vise.
In a statement made a couple of days ago, the CySEC hit a record of €150,000 settlement. This includes all entities that have violated the compliance regulations, including money laundering and terror financing.
In the past month, CySEC agreed to a settlement of €100,000 with Finteractive Limited on a possible violation. This is the operator of the trading brand FXVC.
In addition, the regulatory body fixed Roy Almagor a penalty of €200,000, the former Non-Executive President of Maxigrid’s Board.
CySEC revoked Hoch Capital Limited and ED&F MAN Capital Markets CEEMA Limited from ICF membership in June. This is after the two companies were denied licenses by the Investors Compensation Fund.
The same incident is said to have happened to Hoch Capital’s license.
Lately, the financial regulatory body proposed the compensation of Maxigrid Limited clients under the ICF.
In a situation where CIF goes bankrupt, CySEC covers the investors with a compensation fund of up to €20,000.
