The Cyprus Securities and Exchange Commission (CySEC) imposed an administrative fine totalling €50,000 on licensed investment fund manager Fiduserve for repeated violations of the Investment Services and Activities Act and the Regulated Markets Act.。

Fiduserve fined €50,000

Since Fiduserve failed to obtain the necessary information about the investor's financial position, investment objectives and risk tolerance level between June 2018 and October 2021, it violated the part of the regulation that requires investment companies to recommend suitable financial instruments that meet the customer's situation and risk appetite, so the maximum part of the fine is 20,000 euros。

In addition, for failing to provide periodic statements containing the required content to investors whose portfolios allow leverage management between December 2018 and October 2021, CySEC fined them €15,000.。In addition, Fiduserve did not notify investors when the value of their portfolios declined by more than 10% several times between September 2019 and December 2020.。

fined €5,000 for failing to send an updated statement to investors about how their investments fit their preferences, objectives and characteristics during the same period。Finally, CySEC was fined €10,000 for providing inaccurate, unclear and misleading information to investors.。

In making its decision on administrative fines totalling €50,000, CySEC carefully considered several factors, highlighting the seriousness of Fiduserve's breach.。However, the company's cooperation during the investigation and its clean record were also factors in the final fine amount.。

Second large fine of the year

The €50,000 fine against Fiduserve Asset Management Ltd marks the regulator's second major fine in 2024.。

In early February this year, CySEC reached a settlement with Fintailor Investments Ltd, demanding that the company pay 200,000 euros for possible violations of anti-money laundering regulations.。In the second half of 2023, CySEC took enforcement action against several other investment firms.。

In December, regulators reached a €150,000 settlement with Naga Markets Europe Ltd, a Cyprus-licensed company affiliated with the NAGA Group, which is publicly listed in Germany, over various regulatory violations that occurred between January 2021 and April 2022.。

In December 2023, CySEC fined Begin Capital Markets €50,000 for "possible violations of local regulations."。This is not the first time the regulator has taken action against the company, highlighting the watchdog's relentless efforts to keep the industry in compliance.。

In addition to imposing fines and settling with investment firms, CySEC has taken the initiative to issue warnings to protect investors from unauthorized entities.。In late February 2024, regulators added 10 websites to the list of unauthorized service providers.。