The Cyprus financial watchdog announced today, that at a meeting held on May 18, 2015, its board decided to impose a total administrative fine of €15,000 on Fidelisco Capital Markets Ltd for violating sections of the local Investment Services and Activities and Regulated Markets Law.
Operating since 2013, Fidelisco is authorized and regulated by Cyprus Securities and Exchange Commission (CySEC). Up until recently, the company has mainly focused on physical terminals offering binary options, and officially went into the online market only last month with the acquisition of 365Trading.
According to today’s ruling, since November 2014 the company has been operating a branch (trade room) in the Cypriot city of Paralimni providing investment services, but Fidelisco informed the regulator in advance of its intention to establish a representative office, instead of a branch there, including all the legally required information about the operation.
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CySEC explains that in order to determine the amount of the above mentioned administrative fines, the commission took into account in each case the seriousness the legislator treats such violations, reflected by the maximum amount of the administrative penalty provided by the law for such infringements. As moderating factors, the regulators took into consideration that the branch in Paralimni terminated its operations and had not previously committed a similar violation.
The Cypriot watchdog is attempting to show that it has a real bite and issued more announcements about fines in past months. Earlier this week, CySEC imposed a €100,000 fine on CommexFX following complaints that the brokerage has not been paying out clients for a number of months.