CySec Announces a Settlement with Reliantco (UFX Markets)
Cyprus regulator, CySec, has announced a settlement with investment firm Reliantco (UFX Markets). According to the regulator’s statement, the Reliantco was hit with a €100,000 penalty for possible violations of its securities laws. The settlement ends a two week saga between the broker and CySec.
Last month, CySec had issued a release against Reliantco for possible violations. The statement was then recalled by CySec. In its place, Reliantco issued their own press release two days ago which conferred that they were in the process of settling with CySec. According to Reliantco, CySec was concerned with the “Company’s disproportionate high growth rate compared to its increase in personnel.” Reliantco continued “In an effort to satisfy CySEC’s requirement the Company shall continue to expand its team of global financial experts at an increasing rate specifically at its Cyprus head office.”
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Announcement 02 13 2013 Settlement Reached With Reliantco Investments Ltd by
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“Company’s disproportionate high growth rate compared to its increase in personnel.”
funny!?
great expose of what these cyprus fines are realy about at leaprate
http://leaprate.com/forex-industry-news/entry/cysec-lacking-funding-is-shaking-down-fx-brokers-the-real-story.html
Basically they got fined because they were not really operating out of Cyprus. They booked the business under the Cysec company but kept almost no staff in Cyprus other than the bare minimum needed to maintain the license active (5-6 people, out of which some can even be assigned to two roles).
So essentially Cysec told them … look we know you are not running the business from here, but at least put a bit more effort into pretending that you do 🙂
@MC – nicely stated . I guess we’ll start to see weekly announcements like this for a while. (many may even say its about time)
@Ron – If you ask me the fines should be 10 times higher in most cases. 🙂
yep, and not only should it be fines but actually CySEC needs to go and check each of its brokers and shut at least half of them down as being outright scams – however CySEC is not interested in that
Lol. So basically a real shakedown like what is currently happening @ New Zealand?
The funny thing is that CySec would be MORE profitable in the end because it would increase its credibility by cutting off the crap brokers.
But I guess it is better than Finland or Dominica, where there is NO regulation at all.