CySEC Fines €120k To General Capital Brokers For Possible License Offense

The agreement covers any lapses that may occur between November 2020 and October 2021.

In August, CySEC agreed to a €100,000 loan from ICC Intercertus Capital.

The Cyprus Securities and Exchange Commission (CySEC) said on Friday that it had reached a deal with General Capital Brokers Limited, a Cyprus Investment Firm (CIF), for €120,000 in damages.

The broker may have broken the country's Investment Services and Activities and Regulated Markets Law of 2017, which will be taken care of by the settlement.

CySEC says that the fine makes up for the fact that the brokerage did not meet the requirements for its CIF authorization between November 2020 and October 2021.

The amount also makes up for the fact that the broker didn't meet the requirements for getting an operating license in the time allowed.

CySEC also said that General Capital Brokers did not follow the laws regarding general principles and information about clients.

The settlement amount has been paid by the broker, according to the financial markets supervisor.

The financial markets watchdog said all amounts payable related to settlement agreements are considered revenue (income) of the Republic's Treasury and do not constitute income of CySEC.

Settlement Enforcement

As the government agency in charge of the securities and trading markets in Cyprus, CySEC keeps an eye on the industry and makes sure that everyone follows the rules.

The regulator warned CFD brokers in July that if they did not change their ways, they would face regulatory action to improve compliance and protect customers.

The next month, CySEC gave ICC Intercertus Capital a fine of €100,000 for possibly breaking CySEC rules about how contracts of difference (CFDs) are marketed, distributed, and sold to retail customers.

F1 Markets and Magnum FX (Cyprus) both paid €150,000 to CySEC in the same month for potential compliance violations.

CySEC raised some concerns about Magnum FX's ability to meet CIF authorization and operating license conditions between January 2019 and July 2020.

Meanwhile, both companies had their licenses suspended for two weeks by CySEC in mid-2020.

About CySEC

CySEC, which stands for the Cyprus Securities and Exchange Commission, was set up in 2001 to control the Cyprus financial market. CySEC's financial rules and how it runs are in line with the European MiFID financial harmonization law.

CySEC has registered a large number of overseas retail forex brokers. Before 2018, CySEC was the preferred regulator for many binary options brokers.

CySEC is responsible for the following tasks:

• To supervise and control the operation of the Cyprus Stock Exchange, as well as the transactions that take place on the Exchange, as well as the transactions of its listed companies, brokers, and brokerage firms.

• Supervised and control of Licensed Investment Services Companies, Collective Investment Funds, investment consultants, and mutual fund management firms.

• Investment firms, including investment consultants, brokerage firms, and brokers, must be granted operating licenses.

• To levy administrative and disciplinary penalties on brokers, brokerage firms, and investment consultants, as well as any other legal or natural person who is subject to the provisions of the Stock Market legislation.

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