CySEC Fines Notesco Financial €100,000 over CFD Marketing Violations

BySamson Ononeme

Apr 2, 2024 ,
Forextime Ltd has lost its Cyprus Investment Firm license after the retail broker expressly requested the CySEC to withdraw its authorization.

Key Insights

  • CySEC has reached a €100,000 settlement with Notesco Financial Services Ltd (formerly IronFX)
  • The settlement resolves possible breaches of the EU’s MiFIR by Notesco
  • Notesco has paid the settlement amount

NICOSIA (MarketsXplora.com) – Cyprus’ securities watchdog, CySEC, has reached a €100,000 settlement with Notesco Financial Services Ltd, a Cyprus investment firm formerly known as IronFX, over potential violations related to the marketing and sale of contracts for difference (CFDs) to retail clients.

The settlement, announced by CySEC on Tuesday, resolves possible breaches of the European Union’s Markets in Financial Instruments Regulation (MiFIR) by Notesco, which operates the trading websites www.fxlift.eu and www.ironfx.eu.

Under Article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, the regulator is permitted to reach settlement agreements regarding any violation, potential violation, act or omission for which there are reasonable grounds to believe it breaches legislation under CySEC’s remit.

Specifically, CySEC’s inspection of Notesco during 2023 assessed the firm’s compliance with Article 42 of MiFIR, as outlined in Paragraph 5 of the regulator’s Directive DI87-09 on restricting the marketing, distribution and sale of CFDs to retail clients.

Notesco has already paid the €100,000 settlement amount, CySEC stated.

The Cypriot watchdog noted that all sums payable under such settlement agreements are considered revenue for the Treasury of the Republic of Cyprus, and do not constitute income for CySEC itself.

The settlement comes amid tighter scrutiny of CFD trading across Europe, with several regulators having implemented enhanced investor protection measures related to the leveraged derivative products.

CySEC has been particularly active in policing CFD providers, having reached similar settlements with other regulated Cyprus investment firms in recent years over perceived violations of EU rules governing CFD marketing and sales practices.

Samson Ononeme

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