Further to yesterday’s report by Forex Magnates concerning CySEC’s imposition of an €80,000 fiscal penalty on LQD Markets, the Cypriot regulator has issued an announcement, albeit a very scant and vague one, on the reasoning behind the issuing of the request for payment and fully confirming the mutually agreeable settlement it reached with LQD Markets.
Although LQD Markets declined to provide full details of both the circumstances that led to the transgression which resulted in the penalty from CySEC, as well as the actual settlement which was entered into, CySEC has today confirmed that the firm was required to pay the full amount of the original sum it demanded, and that the demand was issued as a result of regulatory concerns over alleged violations of the application of the Investment Services and Activities and Regulated Markets Law of 2007.
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The alleged violation relates to article 36 of the regulations, and the findings of the regulator were that the company appeared to have been offering investment services through third parties without first obtaining CySEC authorization.
According to CySEC, the sum imposed for transgression of this law depend on the severity of each case assessed, and carry a maximum fine of €350,000. CySEC has confirmed that LQD Markets has at any case now ceased any co-operation with the mentioned third parties.
CySEC’s announcement quantifies that LQD Markets has paid the full amount, and LQD Markets has stated categorically to Forex Magnates that the firm’s senior management does not wish to provide any information on this matter.