The Cyprus Securities and Exchange Commission (CySEC) today announced that it has issued a fine against the parent company of UFX, Reliantco Investments Ltd. The financial penalty on the firm totals €95,000.

According to the announcement, the company violated three points when offering its services to clients.

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Commenting on the news, the Chair of CySEC, Demetra Kalogerou, said: “The fine imposed on the Company for their failings to act in the best interest of their customers follows CySEC’s initial supervisory action towards Reliantco. A fine is not an end-stop action for investment firms regulated in Cyprus, and CySEC will not hesitate to use all the supervisory tools at its disposal to limit consumer detriment.”

One of the components of the fine includes €40,000 for failing to act “fairly, honestly and professionally in relation to customer support services account managers provide to existing clients.”

Another €40,000 of the €95,000 fine relates to “failure to provide accurate, clear and non-misleading advertising materials to clients”. The final €15,000 is charged to the company for “failure to obtain all the necessary and complete information to ensure customer suitability checks authorized appropriate investment services to each individual client.”

Elaborating on the matter, the Managing Director of Reliantco Investments, Dennis De Jong, said:

“The fine that was imposed today related to issues from the past. As written in the decision, a further follow-up inspection revealed that significant progress had been made in line with CySEC’s recommendations.”

The CySEC outlines that it accounted for the company’s corrective actions implemented under CySEC’s jurisdiction, including enhancing its client on-boarding processes and changing its advertising and risk warnings.

“We are pleased that we now have implemented features enhancing onboarding and risk mitigation, and will keep working to the best interests of our clients,” Mr. De Jong elaborated.