The Cyprus Securities and Exchange Commission, popularly known as CySEC, announced on Monday that it has reached a settlement with the management of Prior Capital Cy Ltd, which was formerly known as PriorFx.
The broker paid €100,000 to the Cypriot financial regulator for the settlement, which was reached with Prior Capital’s three Executive Board Members, Konstantin Yasnov, Vladimir Zalogin and Ekaterina Zalogina.
The official announcement specified that the brokerage possibly violated ‘Τhe Investment Services and Activities and Regulated Markets Law of 2017’. Additionally, the regulator specified that there were possible lapses on the part of the board of directors in assessing the company’s mandatory compliances between July 2018 and March 2020.
Though the financial regulator announced it recently, the settlement decision was made on March 8, 2021, and the broker has already paid the agreed amount.
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“CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulator highlighted.
Accused of Some Serious Operational Violations
Prior Capital’s business was oriented around institutional clients, such as hedge funds, small brokers and professional pools of investors. Earlier, it faced serious allegations regarding the safeguarding of clients’ funds.
In 2019, the Cypriot regulator flagged the operations of Prior Capital for non-compliance that followed the suspension of the Cyprus Investment Firm (CIF) license after a few months. Late last year, the regulator completely withdrew the brokerage’s license.
Prior Capital CY Ltd’s former brand, PriorFx Ltd, was previously fined €64,000 in 2017 over violations related to the compliance of its marketing material with the regulatory obligations.