Cypriot regulator CySEC Imposes €360,000 Fine On FXORO Parent Company
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The Cyprus Securities and Exchange Commission (CySEC) has penalized MCA Intelifunds with a fine of €360,000 for several breaches of Cypriot investment regulations.
This fine was reached following a September 2022 investigation that exposed multiple failures in adherence at the company. CySEC has clarified that the agreement resolves accusations of non-adherence with several provisions on multiple regulatory obligations, such as client data disclosure.
More Fines Were Imposed For Not Collecting Important Customer Information
The Cypriot regulator presented a thorough breakdown and precise details regarding the regulatory measure, stating that it took the decision based on potential breach of local laws and lack of honesty in client interactions.
In addition, the brand was called out for not complying with authorization conditions specified in various articles, particularly concerning the suitability of their products provided to specific client segments.
The division of the penalties includes €150,000 for failures in offering investment services to customers in a professional, fair, and honest way. It also includes €80,000 for lacking procedures and policies to adhere to legal requirements. Moreover, the company was charged €25,000 for not assuring that CFDs and other tools it provides were properly allocated to the market.
Another fine of €25,000 was imposed for MCA Intelifunds’ negligence in assessing the suitability of the financial instruments offered to customers based on their requirements. According to CySEC, the company disregarded the interests of the Potential buyers.
CySEC Imposed Administrative Sanctions Worth Nearly €2.2 Million Last Year
The company was also charged €60,000 for failures in collecting important information about customers’ investment experience and knowledge. These details are required in determining whether a product was appropriate. Lastly, a fine of €20,000 was enforced for failing to notify customers when a service or product was deemed unsuitable for them.
In February, CySEC stated that the major objective for this year was the review of promotional contents from more than 35 CIFs. In instances where deceptive content was detected, CIFs were instructed to revise their promotional materials to guarantee precision and impartiality towards investors.
The Market Surveillance team examined 6 CIFs, concluded 42 cases, and carried forward 48 ongoing inquiries by the end of the year. A case was directed to the Attorney General to evaluate possible criminal offenses.
CySEC’s thorough supervisory assessments led to administrative sanctions amounting to almost €2.2 million last year. One CIF is under scrutiny with potential fines of €1 million. For the past three years, the regulator has enforced €6 million in penalties, mainly on CIFs for legislative violations.
