CySEC Fines General Capital Brokers €120k for Possible License Offense

Mar 29, 2023

The settlement covers possible lapses between November 2020 and October 2021.

CySEC reached a €100k agreement with ICC Intercertus Capital in August.

The Cyprus Securities and Exchange Commission (CySEC) announced on Friday that it has reached a €120,000 settlement agreement with General Capital Brokers Limited, a Cyprus Investment Firm (CIF).

The Cypriot financial market watchdog said the settlement is to cover for the broker's possible violation of the country’s Investment Services and Activities and Regulated Markets Law of 2017.

CySEC added that the penalty settles the brokerage’s lapses in complying with its requirement for CIF authorization between November 2020 and October 2021.

In addition, the amount covers the broker’s inconsistency in meeting the conditions listed for granting an operating license within the aforementioned period.

Furthermore, CySEC said General Capital Brokers fell short of the laws on general principles and information to clients.

The broker has paid the settlement amount, the financial markets supervisor said.

“It is noted that all amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC,” the financial markets supervisor said.

Enforcement through Settlement

As the watchdog of Cyprus' securities and trading markets, CySEC continues to monitor various aspects of the industry, enforcing compliance among market participants.

In July, the regulator warned CFD brokers to improve their practices or face regulatory actions geared at improving compliance and enshrining customer protection.

In the following month, CySEC reached a €100,000 settlement agreement with ICC Intercertus Capital to settle the brokerage's possible violations of its rules concerning the marketing, distribution and sales of contracts for difference (CFDs) to retail clients.

In the same month, F1 Markets and Magnum FX (Cyprus) both paid €150,000 each to CySEC for several possible compliance violations.

For Magnum FX, some of the concerns raised by CySEC relate to meeting the requirements for CIF authorization and operating license conditions between January 2019 and July 2020.

Meanwhile, both companies previously endured a two-week license suspension enforced by CySEC in mid-2020.