CySEC Fines AFX Capital Markets Ltd €10,000 on a Number of Violations
- The company operating the AFX Capital brand, based in Cyprus, and with multiple entities regulated in several jurisdictions, got fined a total of ten thousand Euros today, by the Cyprus Securities & Exchange Commission.
The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) announced today that it has fined AFX Capital Markets Ltd, the Cyprus-based online FX broker, a total of €10,000 euros, on the basis of violating several points of the The Investment Services and Activities and Regulated Markets Law of 2007 (referenced as the Act).
While the size of the fine is small in relation to other six figure penalties the regulator has given out in the last year to some some of its other members, the penalty handed down to AFX Capital today, related to its license conditions as a Cyprus Investment Firm (CIF), consisted of several smaller penalties, and cited nearly ten rules that were said to have been infringed upon and resulting in the administrative fine.
Small Fine Related to February 2013 Review by CySEC
According to the press release, AFX failed to comply with appropriate disclosure procedures, and the violations were identified by the regulator back in February 2013, now making the matter a somewhat historical one, with the closure being the fine announced today.
Of the €10,000 euro penalty, €7,000 of that amount is for infringement of Article 28 of the Act which states that administration of a CIF has to be conducted by at least 2 persons, while the company has failed to implement sufficient policies and have corresponding procedures to ensure compliance with Cypriot law.
Furthermore, according to the press release the company has failed to prevent conflicts of interest issues arising among its customers and did not demonstrate appropriate due diligence when assigning its operation officers with auditing functions. The smaller amounts that comprised the total included an amount of € 1,000 for violating article 32 of the Law, € 500 for violation of section 34 of the Act and paragraph 5 of the Directive 12, another € 1,000 for infringement of Article 36 ( 1) of Law, and another €500 for infringement of Article 76 ( 2 ) of the Act, as described in the circular by CySEC. Two of these amounts were related to the company's rep office in Italy, and regarding the registration statuses of their salespersons there.
AFX Capital maintains several regulatory hubs across various jurisdictions under several of its entities, according to information listed on its corporate website. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates' reporters reached out to AFX Capital around the time of publication for feedback, and will include it at a later date as we were unable to reach a company spokesperson prior to publication -but believe the firm is preparing a statement.
The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) announced today that it has fined AFX Capital Markets Ltd, the Cyprus-based online FX broker, a total of €10,000 euros, on the basis of violating several points of the The Investment Services and Activities and Regulated Markets Law of 2007 (referenced as the Act).
While the size of the fine is small in relation to other six figure penalties the regulator has given out in the last year to some some of its other members, the penalty handed down to AFX Capital today, related to its license conditions as a Cyprus Investment Firm (CIF), consisted of several smaller penalties, and cited nearly ten rules that were said to have been infringed upon and resulting in the administrative fine.
Small Fine Related to February 2013 Review by CySEC
According to the press release, AFX failed to comply with appropriate disclosure procedures, and the violations were identified by the regulator back in February 2013, now making the matter a somewhat historical one, with the closure being the fine announced today.
Of the €10,000 euro penalty, €7,000 of that amount is for infringement of Article 28 of the Act which states that administration of a CIF has to be conducted by at least 2 persons, while the company has failed to implement sufficient policies and have corresponding procedures to ensure compliance with Cypriot law.
Furthermore, according to the press release the company has failed to prevent conflicts of interest issues arising among its customers and did not demonstrate appropriate due diligence when assigning its operation officers with auditing functions. The smaller amounts that comprised the total included an amount of € 1,000 for violating article 32 of the Law, € 500 for violation of section 34 of the Act and paragraph 5 of the Directive 12, another € 1,000 for infringement of Article 36 ( 1) of Law, and another €500 for infringement of Article 76 ( 2 ) of the Act, as described in the circular by CySEC. Two of these amounts were related to the company's rep office in Italy, and regarding the registration statuses of their salespersons there.
AFX Capital maintains several regulatory hubs across various jurisdictions under several of its entities, according to information listed on its corporate website. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates' reporters reached out to AFX Capital around the time of publication for feedback, and will include it at a later date as we were unable to reach a company spokesperson prior to publication -but believe the firm is preparing a statement.