The Board of the Cyprus Securities Exchange Commission (CySEC) just announced that has issued series of fines against former executives of CommexFX with a total amount of €400.000.
CySEC has previously fined the company CommexFX, and after numerous suspensions of its license, has finally decided to wholly withdraw the authorisation with number CIF 153/11 of CommexFx Ltd, operating at www.commexfx.com earlier this year.
CySEC Chair Demetra Kalogerou
Demetra Kalogerou, Chair of the CySEC, commented:
CommexFX has persistently violated the laws we have in place to protect investors. The multiple fines imposed on the Company’s directors, and the ban of three directors from regulated activities concludes CySEC’s two-year investigation into the Company’s failings, and follows the withdrawal of its license to perform any regulated activities in 2016. The initiation of the Investor Compensation Fund in May 2017 will ensure the swift remediation of any and all withdrawal of retail client’s monies, up to €20,000 each, in line with CySEC’s commitment to limit consumer detriment. CySEC will not hesitate to pursue regulatory action against current or former directors should they or their licensed company be found to be in violation of the legislation we consistently enforce.
The full text of the CySEC notice follows:
June 8, 2017
CYSEC Decision
Announcement date: 08.06.2017;Board decision date: 13.02.2017
Regarding: AbdeI Rahman Alimari (Shareholder), Stavros Hadjikyriacou (Director), Anastasios Yiapanis (Director), Savvas Rigas (Internal auditor/relevant person), Vladimiros Germanos (Chief Financial Officer), Mohab Mohamed Taghian Radwn (relevant person), Amr Jamal Mohamed Hendawi (relevant person) (CommexFX Ltd)
Legislation: The Investment Services and Activities and Regulated Markets Law, Directive DI144-2007-01 of 2012
Subject: Administrative sanctions
The Board of the Cyprus Securities Exchange Commission (‘CySEC’) would like to inform the public that, following CySEC’s findings regarding the non-compliance of CommexFX Ltd (‘the Company’) with provisions of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), and of Directive DI144-2007-01 of 2012 for the Authorisation and Operating Conditions of CIFs (‘the Directive’) which resulted to the wholly withdrawal of the Company’s authorisation (See CySEC’s Decision dated 6.4.2017), at the meeting held on 13.2.2017, has decided:
1. The imposition of:
1.1. an administrative fine of €150.000 to Mr AbdeI Rahman Alimari, as a person who acted as manager in the Company,
1.2. an administrative fine of €25.000 to Mr Stavros Hadjikyriacou, as executive director of the Company,
1.3. an administrative fine of €15.000 to Mr Anastasios Yiapanis, as executive director of the Company, for non-compliance with paragraph 9(1) of the Directive.
2. The imposition of:
2.1. an administrative fine of €50.000 to Mr AbdeI Rahman Alimari, relevant person to the Company,
2.2. an administrative fine of €50.000 to Mr Mohab Mohamed Taghian Radwn, relevant person to the Company,
2.3. an administrative fine of €50.000 to Mr Amr Jamal Mohamed Hendawi, relevant person to the Company, as the Company’s non-compliance with section 28(1) of the Law, in regard to the authorisation and operating condition laid down in section 18(2)(j) of the Law, was due to their fault, wilful omission and negligence.
3. The imposition of:
3.1. an administrative fine of €10.000 to Mr Savvas Rigas, relevant person to the Company,
3.2. an administrative fine of €10.000 to Mr Vladimiros Germanos, Chief Financial Officer of the Company, as the Company’s non-compliance with section 28(1) of the Law, in regard to the authorisation and operating conditions laid down in sections 18(2)(f) and 18(2)(j) of the Law, was due to their fault and negligence.
4. The imposition of:
4.1. an administrative fine of €20.000 to Mr Stavros Hadjikyriacou,
4.2. an administrative fine of €10.000 to Mr Savvas Rigas,
4.3. an administrative fine of €10.000 to Mr Vladimiros Germanos,
for non-compliance with section 139 of the Law.
Furthermore, at the same meeting, CySEC decided regarding:
(i) Mr. AbdeI Rahman Alimari, to prohibit him from exercising professional activity related to the financial sector for a period of ten (10) years, and
(ii) Mr. Mohab Mohamed Taghian Radwn and Mr Amr Jamal Mohamed Hendawi, to prohibit them from exercising professional activity related to the financial sector for a period of five (5) years.
Full details/justification of the CySEC’s decision are/is available in the Greek text of the announcement.