The Cyprus Securities and Exchange Commission (CySEC) today announced that it has fined Novox Capital Ltd, the parent company of binary options broker OptionBit, with €5,000 for violating the Investment Services and Activities and Regulated Markets Law.
Although the announcement was made today (March 10, 2017), the decision was made on the 30th January, more than five weeks ago, during a CySEC board meeting. Novox Capital is the parent company to several trading brands, mainly OptionBit which offers binary options.
More specifically, Novox Capital incurred a fine of €5,000 ($5,334) as it failed to notify CySEC immediately about rebranding one of its trading names to ‘ZoomtraderGlobal’ which was also coupled with the launch of its new website www.zoomtraderglobal.com. The brand, which is part of the Cyprus regulated parent firm’s portfolio, uses technology from binary options trading software provider Tradologic.
Novox Capital notified the Cypriot regulator on April 8, 2015 but only after a caution was made by CySEC for violating section 34 of The Investment Services and Activities and Regulated Markets Law of 2007.
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Novox Capital is regulated by CySEC and therefore must comply with Cypriot regulations in order to maintain the CIF trading license that enables the broker to offer its services across Europe, the watchdog stated.
This is the second fine imposed by CySEC on Novox Capital in less than one month. Earlier in mid-February, the regulator slapped a €175,000 fine citing multiple violations that caused it to initiate the administrative action. The biggest fine amounted to €70,000, imposed for providing investment advice and portfolio management services without having the appropriate authorization.
The company did not provide additional comment on the matter. Last month, Finance Magnates exclusively reported on the steps taken by the company to reduce its workforce.