CySEC Slaps €200,000 Fines on Pegase Capital Officers, Bans Owner for 5 Years

A number of senior officers received penalties.

The Cyprus Securities and Exchange Commission (CySEC) today announced a series of financial penalties on the directors of Pegase Capital, which had its CIF licenses renounced last year. The Cypriot regulator has also banned the company’s owner Michel Teman from exercising professional activity related to the financial sector for a number of years.

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This decision marks the conclusion of CySEC’s long-time investigation into the suspected failings at Pegase Capital, which was operating a number of FX and binary options brokers under its renounced CIF license, including HelloBrokers, Interactive Option, MTX Plus and pegasecapital.com.

The imposition of financial penalties and prohibition measures on the directors follows the regulator’s suspension of the Pegase Capital license in March 2016 and its ultimate withdrawal after two months for related failings.

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A collective sum of €200,000 has been imposed on the company’s officers with the biggest fine (€150,000) going to Michel Pierre Salomon Teman, the company’s CEO and shareholder with a qualifying holding during the relevant period, according to CySEC’s statement.

A number of senior officers were included in the penalties list. Among them, Pantelis Ioakim and Giorgos Miltiadous, the executive directors of the company until March 2016, were each fined €25,000.

In addition to the financial penalties imposed on Michel Teman, as of February 6 2017, he is banned from exercising professional activity related to the financial sector for five years, until June 2022.

According to the statement, the aforementioned individuals failed to have in place and strictly follow the operational requirements to “periodically assess the effectiveness of the policies, arrangements and procedures implemented by the Company for complying with obligations provided in the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), and in Directive DI144-2007-02 of 2012.”

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