- The Cypriot Financial Regulation Authority CySEC slaps fine on forex broker
- London Capital Group Cyprus reportedly non-compliant on regulations against financial abuse
- Administrative fine of EUR 40,000 levied on broker
It’s been a tough time for the forex broker London Capital Group (Cyprus) Ltd. The Cyprus branch of the London-headquartered broker was the unwelcome recipient of a EUR 40,000 fine.
In its decision that was made public on Friday, the Cyprus Securities and Exchange Commission (CySEC) imposed an administrative fine of EUR 40,000 on London Capital Group (Cyprus) Ltd. The fine was actually decided at a CySEC board meeting held way back on April 5 of this year. According to the board’s statement, LCG did not comply with article 16(2) of Regulation (EU) 596/2014 on market abuse.
“The Board of the Cyprus Securities and Exchange Commission (the ‘CySEC’) wishes to inform the public that, at its meeting held on the 5th April 2021, decided to impose an administrative fine of €40.000 to CIF London Capital Group (Cyprus) Ltd (the ‘Company’) for non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, as further specified in Articles 2 and 3(8) of the Delegated Regulation (EU) 2016/957 supplementing Regulation (EU) 596/2014”.
The board went on to state that the forex broker does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, while also ensuring the monitoring of same.
The full statement said, was published on the CySEC’s official website. If you wish to start trading forex then have a look at this Forex Trading For Beginner’s Guide.
Forex broker does not react to fine imposed, CySEC Moving On Various Regulatory Issues
The forex broker, London Capital Group was mum in its reaction to the administrative fine and the decision of the Cypriot financial watchdog, CySEC.
The Cypriot Financial Services Regulatory Authority is also working assiduously in its monitoring of the forex and financial services sector. The authority partially suspended the Cyprus Investment Firm license (CIF) of Indication Investments Ltd. These are the operators of the forex and CFD brokers Libertex.com. The decision was taken earlier this month.
The regulatory decision which was taken on August 3 was taken for a number of reasons. Amongst these were multiple alleged violations of mandatory compliances. CySEC also found possible lapses on the broker’s part, especially in the compliance with the regulatory framework on the restriction of marketing, distribution and sale of CFD’s to its retail clients.
CySEC also decided to withdraw the CIF licence of Globia Wealth Ltd. In July. This decision was taken on May 17 where the watchdog addressed the issue. CySEC said that the company was the one that decided to expressly renounce the license.
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Gerald Fenech
