CySEC Imposes an Administrative Fine to London Capital Group Cyprus

The Cyprus Securities and Exchange Commission (CySEC) made public on Friday its decision to impose an administrative fine of €40.000 to London Capital Group (Cyprus) Ltd. According to the announcement, the maneuver was decided on a meeting held on April 5, 2021, as the firm didnt comply with the 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, as it does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, which also ensure the monitoring those,” the full statement said, which was published on the CySECs official website.

As of press time, there is no an official statement coming from the broker about the decision taken by the Cypriot financial watchdog.

Recent Regulatory Maneuvers Done by the CySEC

Recently, the CySEC has been active in its oversight within the Forex industry landscape. They partially suspended the Cyprus Investment Firm (CIF) license of Indication Investments Ltd, the operator of the FX and CFDs broker Libertex.com, early this month.

The regulatory decision for the suspension has been made on August 3 for multiple alleged violations of mandatory compliances. The CySEC found possible lapses on the broker‘s part in complying with the regulatory framework on the restriction on the marketing, distribution, and sale of CFDs to retail clients. Also, in July, the Cypriot watchdog decided to withdraw the CIF license of Globia Wealth Ltd. A meeting took place on May 17 this year where the watchdog addressed the matter, clarifying that the firm was the one who decided ’expressly to renounce the license.