Late last week following a report regarding regulatory enforcement by Cypriot regulator CySEC,Forex Magnates announced that there would be further evidence during the ensuing days that this particular regulator is beginning to prove its mettle.
It has been confirmed that Cyprus-based broker LQD Markets has today entered into a settlement with the regulator after having been issued with a request to pay €80,000 following a compliance inspection carried out by the regulator, the sum total having been revealed exclusively to Forex Magnates on Friday.
Although the original amount of the penalty was disclosed, the total settlement which was accepted by CySEC is yet unknown.
This is the second successful imposition of a fiscal penalty by CySEC within a matter of days, following Trading Point of Financial Instruments’ contretemps with the authorities last week for insufficient adherence to procedures relating to the handling of client funds.
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LQD Markets spoke to Forex Magnates on this matter, and has confirmed that the firm has reached a settlement with CySEC following a process of prudential interaction with the regulator which included amongst others the interpretation of new aspects of the European regulatory framework, certain aspects of which were highlighted by CySEC Chairman Demetra Kalogirou at this year’s Forex Magnates IFXEXPO in Cyprus.
During the discussion panels in which the future of the FX industry in Cyprus following this year’s banking crisis was a focus, Ms. Kalogirou addressed the industry participants with a speech confirming CySEC’s commitment to supporting the FX industry on the island, whilst ensuring customer confidence is upheld and procedures are adhered to.
With regard to the case surrounding LQD Markets, a spokesman explained on behalf of the company has it has engaged with CySEC in this process proactively, making the point that “as part of this process, the company has undertaken a number of remedial measures and improvements and is now confirmed under full compliance to CySEC’s satisfaction, where it has also agreed to pay an amount for administrative costs, signifying thus its irrevocable commitment to betterment and improvement as well as the Company’s strict adherence to principles.”
According to LQD Markets, the collaborative spirit of CySEC’s officers was pivotal in ensuring that all implemented improvements are now in place ensuring as always that the interests of our clients are best served.