The Cyprus Securities and Exchange Commission (CySEC) has issued an announcement informing the public that it has imposed a fine on yet another binary options broker. The provider in focus is Opteck with its parent company Centralspot Trading.
Following an investigation, CySEC is imposing a €50,000 fine on the binary options brokerage for non-compliance with the regulatory framework. The company violated terms by outsourcing its services to third parties and at times was misrepresenting the qualifications of its personnel to clients and prospective clients.
Binary options brokers have been at the center of an incentive by CySEC to introduce stringent requirements for regulated firms that are outsourcing specific services to their parties.
While no specific mention is made in this case, some companies have resorted to the services of unregulated firms that have been engaging in cold calls and use hot sales tactics.
Typically sales and support officers have been presenting themselves as experienced financial professionals, which in reality is rarely the case.
CySEC has initiated a massive crackdown on the binary options industry at the beginning of this year. The regulator has been mostly successful in tightening the noose on the sector and assisting some clients that have been misled into investing into binary options, to recover their funds.
The ongoing problems with some brokers are mainly concerning unregulated brands that are operating under the radar. The massive reshape of the circulars governing the provision of binary options only served to eliminate the regulated part of this industry as virtually all major players have ceased operations.