CySEC fines LeadCapital Markets Ltd

Detail

The Board of the Cyprus Securities and Exchange Commission (‘the CySEC’) would like to inform the public that, at the meeting held on 8 th January 2018, decided to impose an administrative fine of €30.000 to the CIF LeadCapital Markets Ltd for non-compliance, during the period between end July/beginning August 2016 until July 2017, with section 36(1) of the Investment Services and Activities and Regulated Markets Law of 2007 as in force, as it did not act honestly, fairly and professionally in accordance with the best interests of its clients in Romania. The Company allowed the provision of services by its branch in Romania before the registration of the said branch in the public register kept by the supervisory authority of Romania, despite being aware of the relevant registration requirement.  

In determining the amount of the said fine, CySEC has taken into consideration the following factors:

1. The importance attributed by the law to violations of this kind, as reflected in the maximum administrative sanction provided in the Law.

2. The importance attributed to ensuring that the persons subject to the supervision of CySEC comply fully with the provisions of the Law. 

3. The importance attributed to the obligation of CIFs to act honestly, fairly and professionally in serving the best interests of their clients. 

4. The importance attributed to the protection of the interests of clients of CIFs.

5. The following mitigating factors have been taken into account: 

     - The Company has terminated the operation of its branch in Romania. 

      - The Company has not committed a similar breach in the past. 

      - Since the material time of the breach, the Company has introduced changes to its management.

Source Link

https://www.cysec.gov.cy/en-GB/public-info/decisions/48235/?uuid=04042018152249