An announcement by the Cyprus Securities and Exchange Commission (CySEC) details that in February the regulator fined SkyFX a total of €20,000. The company operating the brokerage, Trademarker, has been found to be infringing a number of regulatory requirements.
The first count is for violating the requirements for suitability of shareholders and for outsourcing services to other countries. The fine on this charge is €10,000.
the investigation stems from poor practices which were reported by clients in August of 2013
SkyFX also failed to comply with regulations related to outsourcing some services to third parties. In this particular case, the firm has been found to have outsourced some marketing activity to Israel.
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A company representative has shared with Finance Magnates reporters that the regulatory violations for which SkyFX has been fined are both legacy issues for the current ownership and have occurred back in 2013.
Following is the official statement made by a SkyFX representative, “The ownership of SkyFX and Trademarker would like to acknowledge the following, in regards to the fine issued by CySEC to our company on 20 May 2015, the investigation stems from poor practices which were reported by clients in August of 2013, prior to our purchase of the SkyFX/Trademarker brand and company.”
“While we are pleased this matter has now come to a close, we feel it is correct to acknowledge this very lengthy investigation began nearly two years ago,” the statement concluded.
There have been numerous reports about clients of SkyFX being called with solicitations to open trading accounts. The activity does not comply with the regulatory framework in Cyprus. In addition, the broker has allowed for investment services to be provided by non-licensed persons in Israel. On these two counts the fine totals another €10,000 euros.
The regulator has considered the fact that the company abandoned its practices as a mitigating factor as the unauthorized shareholders have left the firm and clients are no longer contacted by persons who are not authorized by CySEC to give investment advice.