Breaking: IronFX Settles to Pay CySEC €335,000
CySEC appears to have taken a decision on the matter of IronFX, however no details have been provided to the

The Cyprus Securities and Exchange Commission (CySEC) issued an announcement detailing that it has entered into a settlement agreement with IronFX Global. According to the document, the regulator has determined that there is a possibility that the company has been in violation of the legislative framework under which Cyprus Investment Firms operate.
The settlement agreement between CySEC and IronFX is for “reasonable suspicions of having committed possible infractions of the Investment Services and Activities and Regulated Markets Law of 2007.”
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According to official information from CySEC, “IronFX has exercised the right to seek a compromise agreement under a provision in the law which states that supervised entities have the right to request a compromise agreement and CySEC may proceed with such a compromise for any violation or possible violation, action or omission, for which there is reasonable suspicion that it was committed in violation of the existing legislation, as long as supervised entities chose to exercise this right.”
The first point in the document released by CySEC, details possible violations in the Organizational requirements for Cyprus Investment Firms (CIFs).
The provisions of Section 18.2 of the law which the regulator cites as being taken into account when reaching the settlement follow below:
1. Establish adequate policies and procedures sufficient to ensure its compliance, including its managers, employees, tied agents and other relevant persons, with its obligations pursuant to this Law and the directives issued pursuant to this Law, as well as appropriate rules governing personal transactions by such persons;
2. Maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps designed to prevent conflicts of interest as stated in section 29 from adversely affecting the interests of its clients;
3. Take reasonable steps to ensure continuity and regularity in the performance of investment and ancillary services and activities, by employing appropriate and proportionate systems, resources and procedures·
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4. Ensure, when relying on a third party for the performance of investment services or activities or operational functions which are critical for the provision of continuous and satisfactory service to clients and the performance of investment activities on a continuous and satisfactory basis, that it takes reasonable steps to avoid undue additional operational risk. Outsourcing of the above must not be undertaken in such a way as to materially impair the quality of its internal control and the ability of the Commission to monitor the CIF’s compliance with all its obligations;
5. Have robust governance arrangements which include a clear organisational structure with well defined, transparent and consistent lines of responsibility;
6. Have sound administrative and accounting procedures, internal control mechanisms, effective procedures for assessing the risks the CIF undertakes or may undertake, and effective control mechanisms; including appropriate administrative and accounting procedures and safeguard arrangements for information processing systems;
7. Arrange for records to be kept of all services provided and transactions undertaken by it, which shall be sufficient to enable the Commission to monitor compliance with the requirements under this Law, the directives issued pursuant to this Law and the Regulation (EC) No 1287/2006, and in particular to ascertain that the CIF has complied with all its obligations with respect to clients or potential clients;
8. To apply appropriate client identification procedures, record maintenance and internal reporting as provided by the Prevention and Suppression of Money Laundering Activities Law and by directives issued pursuant to the said Law or/and to section 20 of this Law;
Bonus Conditions and Best Execution Practices
Another two possible violation counts were mentioned in the announcement made by the CySEC. The first is Section 36 of the law which states that a Cyprus Investment Firm (CIF) has to act honestly, fairly and professionally in accordance with the best interests of its clients when providing investment and ancillary services.
The point mentions several complaints of the company’s clients wherein they allege that the brokerage hasn’t adhered to, in particular with the bonus policies of the company and attached conditions. In addition, the section of the law specifies that the marketing communication has to include all of the conditions attached to a particular promotion.
A number of IronFX’s clients have been complaining that their funds have not been released by the company, while IronFX claims that the traders have abused the bonus system implemented by the brokerage.
The next section of the law mentioned in the announcement is Section 38, relating to best execution practices. According to the provisions in the law, “A CIF must take all reasonable steps to obtain, when executing orders, the best possible result for its clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.”
Apparently, this point was also identified by the regulator as a factor when making the decision to settle with IronFX. No information regarding pending client withdrawals has been provided by CySEC for the time being.
Fines to 5 companies totaling EUR 1,331,000
– WGM = EUR 340K
– IronFX = EUR 335K
– Pegase Capital = EUR 300K
– Depaho = EUR 233K
– Reliantco = EUR 123K
Funny you don’t mention the other 4 Companies that got Judgments against them on the same announcement and concentrate on the only settlement which is IronFX. Very equal coverage of the announcements.
This is not a Fine like the rest, it is a Settlement (no wrongdoing proven). Which part of the word Settlement you don’t understand?
The brands associated with each fine:
1. WGM (EZTrader.com)= EUR 340K
2. IronFX = EUR 335K
3. Pegase Capital (Interactive Option, HelloBrokers, MTXPlus)= EUR 300K
4. Depaho (FXGM, GTCM) = EUR 233K
5. Reliantco (UFX Markets) = EUR 123K
“No wrongdoing proven”, give it a rest, please! If I owned/ran a legitimate forex business I’d agree to pay out in excess of 300k when I had nothing to hide. PFFT next.
Buddy – no regulator will admit a botched investigation. To reverse your argument, do you think that if CySEC had any grounds to impose a judgment or anything else, they wouldn’t have done so? Botched investigation = no wrongdoing = regulator forced to settle an erroneous investigation.
If the company was in order there would be no need to “settle”, or am I just completely getting the wrong end of the stick? I certainly don’t think we’ve heard the end of this, it seems Iron may have managed to squirm out of a tight hole for now by paying off the right people and “exercising the right to seek a compromise”. That doesn’t spell erroneous investigation to me, more so a weak regulator. No smoke without fire springs to mind.. It also still doesn’t answer the 100’s, 1000’s, 10,000’s of disgruntled clients waiting on withdrawals. If you… Read more »
@God you are obviously an Ironfx employee trying desperately to justify the mess that yr company got itself into. Does it really matter whether its a fine or not? 335K is a big amount for a company to agree to settle if there was no wrongdoing done. Actually thinking about it and putting together the size of the mess and previous fines imposed by CySec this is peanuts my friend. U still got a license to operate and I am sure Kashiouris and Economides are celebrating deep inside. For now… Also nice one for CySec that waited months and bundled… Read more »
Buddy – you are clearly an incompetent competitor watching….
To repeat above: no regulator will admit a botched investigation. To reverse your argument, do you think that if CySEC had any grounds to impose a judgment or anything else, they wouldn’t have done so? Botched investigation = no wrongdoing = regulator forced to settle an erroneous investigation.
@Lulu Bason. I am not your buddy and no need for name calling here though I can understand your frustration after your company has created such a mess and damage in the industry. What are you trying to say here? That CySec panicked and was forced to settle because there was no case?? LOL!! What planet do you live on. Wake up and smell the roses my friend. Count the lawsuits against you and also count the unprecedented complaints of IronFX clients that one can find over the internet and then you can get a sense of the scale of… Read more »
Buddy – unsubstantiated “complaints” on the internet mean nothing. There was a decision from the regulator that you don’t seem to like. Move on and try to make some money.
Look pal. The regulator slapped you with a decent fine. This is only the beginning bud. Arrogance and cowboy cultures like yours don’t last long. Pay your clients back so they stop littering the internet with their complaints damaging Cyprus and the whole FX industry. Oh and yes we are making money, treating customers right. How about u?
Does this mean IronFX will finally pay the clients who have being waiting for withdrawals for months now???
NO, no, there is no question about it
IronFX employees and management can comment as much as they like. The facts are that this charade organized by CySEC today proves that the regulator is a joke. They have waited for months to reach a decision about IronFX and pooled the announcement together on a Friday afternoon so the attention is diverted away… No mention of client withdrawals requests pending, no nothing. All of this happens in a EU regulation which can be passported across… The license of IronFX is a joke, their management is a joke and this whole bigotry from employees of the company is a joke.
You also seem to be an incompetent competitor watching IronFX making money. A botched investigation by CySEC leaves no other option than to settle. You can read it whichever way it suits your incompetence but it won’t help you make money. Botched investigation = no wrongdoing. Period.
To put an end to this: According to official information from CySEC, “IronFX has exercised the right to seek a compromise agreement under a provision in the law which states that supervised entities have the right to request a compromise agreement and CySEC may proceed with such a compromise for any violation or possible violation, action or omission, for which there is reasonable suspicion that it was committed in violation of the existing legislation, as long as supervised entities chose to exercise this right.”
I am late to the party with my thoughts judging by all the comments that this ruling has raised! However, if IronFX was struggling to pay its clients then how can it pay CySEC this fine? When will this fine be due? Is IronFX “too big to fail”? Surely a company the size of IronFX should be given a harsher penalty? CySEC pointing an accusatory finger at IronFX results in 3 fingers pointing back at CySEC? IronFX brand has been irrevocably damaged Changing their name in the UK – come on please!!! Would you open an account with them? In… Read more »
Ahahahahahha.. this is funny to watch.
Now, You are clearly a competitor watching IronFX making money and eating your fingers like candy bars.
Be straight. don’t be shy babe. Tell us openly who are you and who are these other “respectful, compliant” brokers to go and trade with them since IronFX doesn’t qualify in your top and most respected brokers list 🙂
Why is it whenever someone voices an opinion that doesn’t glorify how wonderful and rosy things are at IronFX they must be a competitor? And almost always a competitor that is sat there watching IronFX “make money”! It’s the world v IronFX and everyone is just jealous of us”. I’ve seen it over and over and it’s getting pretty tedious.
This “look at all the money we make ethos” will ultimately be the downfall unless something at the top changes…
Where are our withdrawals if you have the funds to pay Cysec and making all this money?
Return my money!
Pathetic…we see other companies being withdrawn with their licences, but of cource “koumparos” from CySEC is not going to make such a thing for Mr.Kashulis.
Bravo Mr.Kashulis, Bravo CySEC – once again all of you have proven, that everything is possible if you know people, who know people. End of story.
PS: Black friday for regulator trust.
The debate of fine vs settlement is pointless to say the least… In any case 350K is peanuts under the circumstances that we are all very much aware of, and given the size of IronFX. Still, credit to CySEC that seems to be toughening its stance. Hope that more brokers are next in line.
CySEC cannot force IronFX to pay back money to clients. If you are a victim of IronFx u may now use the CySEC ruling and resort to either of two options: to appeal to the Financial Ombudsman http://www.financialombudsman.gov.cy for claims up to €170,000, or take legal action in the Cyprus courts, where cases could drag up to 2-3 years. They seem to have some cash as they paid the fine so hurry! Unless they paid the fine with client funds….
Iron Fx can not pay back client’s money. They are stealing people money to support the cypriot government and they brought new and fresh money from Europte to Cyprus. Nobody will get back his money, because you are witness of a legal way to wipe out client’s fund. They never said they will not give back, they do not give back because it under investigation and Cysec assist to this. This is Cyprus, Greece, TUrkey where the corruption on high level. On Short term they won but on long term they are so stupid, because they lost the trust in… Read more »
Pay attention to these comments, not necessarily in order of importance or unfolding: 1. We are talking here about IronFX: the Iron Dome of Cyprus. All CIFs defense system. 2. Settlement achieved on behalf of the well-being of [Cypriot] society as a whole. Also for the benefit of the Forex and BO business. “Because someone has to gamble and someone needs a place to do it. At least Legally”. 3. Why so much surprise for a settlement? Are you people really so naive to think that a first investigation into the Iron Dome system was about to bring a fine?… Read more »
I am annoyed because IronFX is still carrying out the Practice of with holding Client money.
My request for refunding my funds has been completely ignored.