Cyprus Regulator Fines IC Markets (EU) €50,000 for Regulatory Breaches

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Key Insights

  • CySEC fines IC Markets (EU) Ltd €50,000 for violating Cyprus’ investment services law.
  • Violations include failure in best execution practices and inadequate cost disclosure to clients.
  • The regulator considered multiple factors in determining the fine, including the firm’s corrective measures.

NICOSIA (MarketsXplora) – The Cyprus Securities and Exchange Commission (CySEC) has imposed a €50,000 fine on IC Markets (EU) Ltd for multiple violations of the country’s investment services law, the regulator announced on Thursday.

The decision, made at a meeting on July 1, 2024, addresses breaches of the Investment Services and Activities and Regulated Markets Law of 2017 (L.87(I)/2017) by the Cyprus Investment Firm (CIF).

CySEC’s investigation revealed three primary areas of non-compliance:

Firstly, a €30,000 fine was levied for violating section 28(1)(a) of the law. The regulator found that IC Markets (EU) failed to take sufficient steps to obtain the best possible results for its clients when executing orders, particularly in terms of price and size.

Secondly, the firm received a €10,000 penalty for contravening section 28(4), as it did not establish and implement effective arrangements to comply with its best execution obligations under section 28(1).

Lastly, another €10,000 fine was imposed for breaching section 25(4)(b). The company failed to provide clients with clear information about costs and charges, hindering their ability to understand the cumulative effect on investment returns.

In determining the fines, CySEC considered several factors, including the seriousness of the violations as reflected in the law’s prescribed sanctions, the importance of full compliance with L.87(I)/2017, IC Markets (EU)’s financial strength, and its cooperation with the regulator. The absence of similar past violations was also taken into account.

The regulator emphasized the significance of protecting CIF clients’ interests through best execution practices and transparent cost disclosures. CySEC acknowledged that IC Markets (EU) has already implemented corrective measures for the first two violations and intends to address the third.

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This action underscores CySEC’s commitment to maintaining high standards in Cyprus’s financial services sector, particularly in areas of client protection and regulatory compliance.

IC Markets (EU), identified by its Legal Entity Identifier (LEI) 549300O8CKXT0AKIWS77, has not yet commented on the regulator’s decision.

The fine comes amid increasing regulatory scrutiny of online trading firms across Europe, as authorities aim to enhance investor protection in the growing retail trading market.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.

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