Naga Markets Announces a €150K Settlement with CySEC Over Violations
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The Cyprus Securities and Exchange Commission (CySEC) has secured a €150,000 settlement with Naga Markets Europe Ltd. This settlement involves the company’s regulatory violations between January 2021 and April 2022. Naga Markets is part of the larger NAGA Group in Germany.
CySEC and Naga Markets Reach A €150,000 Settlement
The settlement comes after a desk-based review and probe into the compliance of NAGA with multiple guidelines under the Investment Services and Activities and Regulated Markets Law.
The CySEC uncovered multiple violations related to NAGA’s authorization conditions, organizational needs, and information shared with clients. It also checked the suitability and whether the assessments were appropriate.
The details about the specific violations by the trading company have not been shared. However, this settlement shows that the Cypriot regulator is taking a keen approach to monitoring standards and imposing enforcement actions that meet the needs of Cyprus’s financial industry.
The Cypriot Treasury reveals that Naga Markets has already paid the €150,000 settlement. The company joins a list of financial firms forced to pay fines or settle with the regulator.
Despite this setback, NAGA is still growing and is announcing plans to merge with Capex.com. The merger will contribute a combined revenue of $250 million for the merged entity. The deal is set to close before the end of the first half 2024.
The broker’s financial results for the first six months of 2023 show that it earned €25.2 million, which was €5 million higher than its preliminary results.
CySEC Takes a Strict Approach to Regulate Financial Markets
The CySEC has taken stern action against financial companies failing to meet the regulatory threshold. On Thursday, it fined BCM Begin Capital Markets €50,000 over a potential breach of local regulatory standards.
CySEC also imposed charges against Titanedge Securities Ltd behind TradeEU.com and Titan Edge. It penalized the company €90,000 over compliance issues between October 2022 and July 2023.
The regulator also took enforcement action against a regulated retail broker, TriumphFX. The CySEC halted the company’s shareholder rights amid management concerns revolving around the sole indirect shareholder, Chong Chun Hseung.
The number of fines and settlements reached by the CySEC depends on the circumstances of every case. Firms under regulatory purview must take corrective measures to improve internal procedures and guarantee full compliance.
