Notesco Agrees to €100,000 Settlement with CySEC over Compliance Issue

by Tareq Sikder
  • Following an inspection conducted in 2023, CySEC decided to settle on January 29, 2024.
  • The regulator stressed settlements require suspicion of violation, with no judicial review indication.
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The Cyprus Securities and Exchange Commission (CySEC) has announced a settlement agreement with Notesco Financial Services Ltd regarding a possible violation of Regulation on markets in financial instruments.

According to CySEC's announcement, the decision to settle was made on January 29, 2024, following an inspection conducted in 2023 to assess the Company's compliance. The inspection was carried out by CySEC's Directive, which pertains to the Restriction on the Marketing, Distribution, and Sale of Contracts for Difference to Retail Clients.

Resolving Compliance Dispute with CySEC

Under the Cyprus Securities and Exchange Commission Law of 2009, CySEC has the authority to enter into settlement agreements for violations or possible violations that breach the provisions of legislation within its regulatory remit. The settlement reached with Notesco Financial Services Ltd amounts to €100,000. The Company has already fulfilled its obligation by paying the specified amount.

Source: CySec
Source: CySec

CySEC emphasized that settlements are reached when there are reasonable grounds to believe that a violation has occurred. However, there is no indication of any judicial review or ruling related to this particular case.

Inspections and Penalties Ensure Regulatory Compliance in 2023

Earlier, Finance Magnates reported that CySEC underscored its focus on regulatory integrity and investor protection through inspections and penalties on non-compliant entities in 2023. Conducting over 700 audits, both on-site and remote, the regulatory body prioritized adherence to regulations and safeguarding investor interests.

CySEC's Market Surveillance and Investigations Department conducted 42 investigations, with an additional 48 ongoing cases by year-end. The supervisory audits led to administrative fines totaling €2.2 million, including a notable €1 million fine imposed on a single investment firm, highlighting the severity of regulatory violations.

The Cyprus Securities and Exchange Commission (CySEC) has announced a settlement agreement with Notesco Financial Services Ltd regarding a possible violation of Regulation on markets in financial instruments.

According to CySEC's announcement, the decision to settle was made on January 29, 2024, following an inspection conducted in 2023 to assess the Company's compliance. The inspection was carried out by CySEC's Directive, which pertains to the Restriction on the Marketing, Distribution, and Sale of Contracts for Difference to Retail Clients.

Resolving Compliance Dispute with CySEC

Under the Cyprus Securities and Exchange Commission Law of 2009, CySEC has the authority to enter into settlement agreements for violations or possible violations that breach the provisions of legislation within its regulatory remit. The settlement reached with Notesco Financial Services Ltd amounts to €100,000. The Company has already fulfilled its obligation by paying the specified amount.

Source: CySec
Source: CySec

CySEC emphasized that settlements are reached when there are reasonable grounds to believe that a violation has occurred. However, there is no indication of any judicial review or ruling related to this particular case.

Inspections and Penalties Ensure Regulatory Compliance in 2023

Earlier, Finance Magnates reported that CySEC underscored its focus on regulatory integrity and investor protection through inspections and penalties on non-compliant entities in 2023. Conducting over 700 audits, both on-site and remote, the regulatory body prioritized adherence to regulations and safeguarding investor interests.

CySEC's Market Surveillance and Investigations Department conducted 42 investigations, with an additional 48 ongoing cases by year-end. The supervisory audits led to administrative fines totaling €2.2 million, including a notable €1 million fine imposed on a single investment firm, highlighting the severity of regulatory violations.

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