IC Markets (EU) Ltd receives €50K CySEC fine for various violations

Regulatory news

2024-09-09 11:03:41

2.08W

CySEC imposed a fine of €30,000 for not taking all sufficient steps to obtain, when executing orders, the best possible result for clients.

Cypriot financial regulator Cyprus Securities and Exchange Commission (CySEC) has announced that at its meeting held on meeting held on the 1st of July 2024, it decided to impose a total administrative fine of €50,000 to the CIF IC Markets (EU) Ltd (LEI 549300O8CKXT0AKIWS77) (the ‘Company’), for violations of the Investment Services and Activities and Regulated Markets Law of 2017, as in force (the ‘L.87(I)/2017’).

Particularly, CySEC imposed to the Company:

A. A fine of €30,000 for violation of section 28(1)(a) of the L.87(I)/2017, as the Company did not take all sufficient steps to obtain, when executing orders, the best possible result for its clients, taking into account the price and the size.

B. A fine of €10,000 for violation of section 28(4) of the L.87(I)/2017, as the Company did not comply with its obligation to establish and implement effective arrangements for complying with section 28(1) of the L.87(I)/2017.

C. A fine of €10,000 for violation of section 25(4)(b) of the L.87(I)/2017, as the Company did not ensure that the information about costs and charges that was notified to the clients, allowed the clients or the potential clients, to understand with clarity the cost and the cumulative effect of the cost, on return of the investment.

As factors in determining the amount of all the above administrative fines, CySEC said it took into account for each case:

1. The seriousness that the legislator attaches to violations of this kind, which is reflected by the administrative sanctions and measures provided for in the article 71(6) of the Law.

2. The importance attached to ensuring that the persons subject to supervision of the Company fully comply with the provisions of Law 87(I)/2017.

3. The financial strength of the Company.

4. The Company’s cooperation with the regulator.

5. The fact that the Company has not committed a similar violation in the past.

While in particular CySEC said it took into account:

6. In relation to article 28(1)(a) of Law 87(I)/2017–

6.1 The importance attached to the protection of the interests of the clients of a CIF, which is achieved by ensuring that the CIF executes its clients’ orders for their benefit and with the best possible result.

6.2 The fact that the Company has taken corrective measures.

7. In relation to article 28(4) of Law 87(I)/2017–

7.1 The importance attached to the protection of the interests of the clients of a CIF, which is achieved by drawing up and implementing an effective policy execution of customer orders, which allows the CIF to achieve this best possible result for their benefit.

7.2 The fact that the Company has taken corrective measures.

8. In relation to article 25(4)(b) of Law 87(I)/2017–

8.1 The importance attached to the protection of the interests of the clients of a CIF, which is achieved through ensuring the provision of information which allow the customer to understand the total cost and cumulative effect of the return on investment.

8.2 The Company’s intention to take corrective measures.

Gerald Segal

Gerald is the founder of FNG and is one of the most experienced writers covering the online trading sector. Prior to starting FNG, Gerald founded Forex industry B2B news website LeapRate.com in 2010, selling it in 2018 to publicly traded Catena Media plc (STO:CTM). An avid skier, cyclist and ice hockey player, Gerald was previously an investment banker for more than a decade at Bear Stearns, Robertson Stephens, and Merrill Lynch. Gerald holds an MBA from Columbia University in New York and a BCOM degree from the University of Toronto.