The Cyprus Securities and Exchange Commission (CySEC) has reported a €120,000 settlement with CFD and FX broker Teletrade-DJ International Consulting Ltd.
The Cyprus watchdog said that the settlement was in relation to possible violations of organizational requirements, information provided to clients, assessment of suitability and appropriateness of clients, and the obligation to execute orders on terms most favorable to the client.
CySEC noted that the investigation into Teletrade’s conduct dates back to 20 December 2018.
The regulator also reported that the company has paid the settlement amount.
CySEC said in the announcement:
CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation.
The Cyprus regulator identified common weaknesses among regulated firms in relation to the prevention of money laundering and terrorist financing. CySEC based its findings on onsite inspections performed in 2019 and 2020. These inspections were aimed at assessing the regulatory firms’ compliance with mandatory laws to contain and fight money laundering and terrorist financing.
Earlier this week CySEC announced the establishment of a Temporary Permissions Regime (TPR), which will admit 88 UK-based firms to provide investment services in Cyprus without the need of a physical presence in the country. Under official CySEC directives and policy statements, the new regime will cover UK businesses that wish to provide services exclusively to professional customers and their eligible Cyprus-based counterparties.
