CySEC imposed fines on four broker companies

CySEC imposed fines on four broker companies

binary-503577_960_720A number of rule violations are four Cypriot financial companies that Binäroptionen- or Forex brokers operate, now dearly. Overall, the competent financial market supervisory Cyprus Securities and Exchange Commission (CySEC) the end of November distributed penalties in the amount of 1.331 million euros.

The failings it is all about the inadequate protection of customer funds, inadequate risk analysis, wrong management processes, problems in outsourcing of services, the lack of monitoring of their own service offerings and the exceeding of the allowed by the license framework of services.

Only 340,000 euro fine for WGM Services Ltd.

All companies concerned operate several brokers brands. WGM Services Limited (EZTrader, EZInvest and Global option) summed up with 340,000 euros from the highest of any penalties imposed. 300,000 euros to pay Pegase Capital Limited (Interactive option, Hello Brokers and MTX plus). On Depaho Limited (GTCM and FXGM) accounts for 233,000 euros and Reliantco Investments Limited (UFX and UFXMarkets) escaped with relatively low 123,000 euros.

In a statement, the CySEC also released more details about the allegations that are made to individual companies. WGM offered about his state license to beyond investment management services and operating its platform rather than, as claimed by Cyprus from Israel. Reliantco escaped with the lowest fine, since it has, in contrast to other companies, offered no unauthorized portfolio management.

Action sharply against brokers who violate the rules

Criticized and punished were also bonus conditions that violate customer interests, lack of education on the risks of trades with high leverage, weaknesses when assessing the suitability of the customers for the offered shops and unfair or deceptive advertising. The fines were distributed as part of a wider program to more rigorous test of the Cypriot investment firms that should be continued in the coming year. The focus is mainly the organizational structures of companies and matters of professional conduct towards customers.

Customer safety and fair market as target

In addition to the fines CySEC has affected service also plotted the errors detected and resolve problems. Failure to do so within the next two months at risk of further financial penalties or other sanctions. The chairman of the CySEC, Demetra Kalogerou explained to the Causa: “The ultimate aim of the investigations of the Cyprus Securities and Exchange Commossion it is locally investor protection and the proper functioning of the entire securities market, by improving compliance with relevant laws by Cypriot Investment Firms , to ensure.

The CySEC wants Cypriot investment firms continue to monitor closely and not hesitate to take further action against companies that do not comply with the rules for the protection of investors. On binary-only broker be included in the comparison that are undergoing proper license.

Whether at the really big stock deal on the stock exchange, trades on Forex, or to trade in binary options – it’s almost nowhere in the world of finance without technical analysis. Who invests his money in financial products targeted mostly works with the scrutiny of price charts. It represents the basis for informed decisions on certain investments.