CySEC Imposes €30,000 Fine On Plum For Financial Violations
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The Cyprus Securities and Exchange Commission (CySEC) has slammed a €30,000 fine on Plum, a smart money app, for breaking several rules related to “prudential requirements.” According to CySEC, the fine followed an inspection that found Plum Money CY Limited, the company behind the app, had problems with its finances at the end of 2023.
CySEC stated that Plum had failed to keep enough money in its required capital tiers by December 31, 2023. This led to multiple fines for the company. First, Plum was fined €8,000 for not having enough funds to meet the minimum requirements. Then, another €8,000 fine was given for failing to keep the capital levels in line with what the rules require.
Plum Faces Fines But Secures Strong Financial Backing In Series B Round
CySEC also noted that Plum did not have enough liquid assets. The company was supposed to keep a certain amount of liquid funds based on its expenses but failed to do so. For this, Plum was fined an additional €8,000.
Finally, the remaining €6,000 fine was given because Plum missed the deadline to submit its annual report for 2023. CySEC said that the report was due by February 11, 2024, but the company did not meet the deadline.
Even though the total fine was €30,000, Plum is not expected to struggle with this cost. The company has recently raised £16 million in a successful series B funding round.
According to reports, Plum has been growing quickly, with its assets under management (AUM) now over £1 billion, thanks to its rapid expansion.
The recent funding round was led by iGrow Venture Capital. Other investors, such as Venture Friends and Ventura Capital, also added to the funding, along with Eurobank, which is a strategic partner.
The crowdfunding part of the campaign was hosted on Crowdcube, where over 5,500 investors from the UK and the EU contributed. This made the campaign one of the most successful on Crowdcube this year, according to reports.
Plum Expands Services And Welcomes New Head Of Branding And Communications
In the last year, Plum has expanded its services into new countries, including Italy, Portugal, the Netherlands, Greece, and Cyprus. The platform allows users to save money automatically and invest in U.S. stocks without paying commissions.
Plum offers up to 3,000 stocks for trading, and users can also get a VISA debit card for added financial flexibility, according to the report.
Plum has also partnered with Bitpanda, a cryptocurrency service provider. This partnership allows Plum’s European customers to trade major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The company stated that this new feature has attracted many users who are interested in crypto trading.
In addition to its financial services, Plum has announced that Erinoula Kyrantonis is its new Head of Branding and Communications. Kyrantonis will handle Plum’s branding strategy and make sure its messages stay consistent across different channels.
