CySEC Fines Licensed Firm €50,000 Thousand For Lapses In Investor Protection
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Fiduserve Asset Management Ltd, an investment fund manager authorized in Cyprus, has received a €50,000 total administrative fine from the Cyprus Securities and Exchange Commission.
The regulator penalized Fiduserve for several violations of the laws in Regulated Markets and Investment Activities and Services by the company.
The largest part of the fine amounted to €20,000. It was issued for Fiduserve’s failure to collect important information about the financial situation of its investors. The company also did not attain valuable details on risk tolerance levels and investment objectives between June 2018 and October 2021.
The Company Failed To Offer Investors With Relevant Financial Instruments
The company’s failure to get all the information stated above breaches a section of CySEC’s regulation. This directive demands the provision of suitable financial instruments by investment companies to match their customer’s risk appetites and profiles.
Furthermore, CySEC charged a €15,000 fine for the failure to issue regular statements with the specified content to investors. The company was supposed to provide periodic statements to particularly those investors whose portfolios supported leveraged management from December 2018 and October 2021.
According to the latest report, Fiduserve neglected to notify investors when their portfolios decreased in value by over 10% several times between September 2019 and December 2020.
A €5,000 penalty was enforced for failure to send updated information on how the investment placed by several investors aligns with their aim, characteristics, and objectives. After that, CySEC charged Fiduserve €10,000 for providing misleading, unclear, and inaccurate information to investors.
Fiduserve Clean Record Influenced The CySEC Final Charged Amount
At reaching the €50,000 full administrative fine, CySEC closely revealed various factors that underlined the seriousness of Fiduserve’s violations. However, the firm’s clean record and its cooperation during the investigation also influenced the final penalty amount.
The €50,000 charges placed on Fiduserve Asset Management Ltd signifies the second major penalty imposed by the regulator in 2024.
In February this year, CySEC agreed with Fintailor Investments Ltd. In the agreement, the investment company was required to pay €200,000 for breaching the anti-money laundering regulations. Towards the end of 2023, the regulator took enforcement measures against many investment firms.
During the period, in December, the regulator came to terms with Naga Markets Europe Ltd, a company licensed in Cyprus. The firm is part of the publicly traded NAGA Group headquartered in Germany. It paid a total of €150,000 to settle charges on several regulatory violations that took place between January 2021 and April 2022.
