CySEC Fines Maxigrid Directors, Bans Four from CIF Management

The Cyprus Securities and Exchange Commission (CySEC) has slapped administrative sanctions on current and former directors of Maxigrid, which operates retail FX and CFD trading brands Dualix and AGM Markets.

Announced on Friday, the financial market supervisor slapped a monetary penalty of €200,000 on Roy Almagor, who is a shareholder and former Non-Executive President of Maxigrid’s Board. Additionally, he is facing a five-year ban from taking a management position in a Cyprus Investment Firms (CIFs).

Jekaterina Pedosa, an Executive Director of the company, received a €10,000 administrative fine, along with a five-year management ban. Katerina Papanicolaou, another Executive Director, and Nikolai Monogarov, an ex-Executive Director, also received an individual ban of two years from taking any CIF management role.

The regulatory decision against the directors came after an invention against the non-compliances of Maxigrid.

“Maxigrid's Board of Directors was found to have acted in violation of this article over its failure to define and take responsibility for the implementation of arrangements that ensure the effective and prudent management of the Company, in a way that promoted the integrity of the market and the interest of its clients,” 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 press release stated.

“Specifically, during the period between 4th September 2020 and October 2021, the principle of governance arrangements, which is set out in section 10(1)(b)(ii) of the Law, was not applied.”

A Troubled Brokerage Operator

The Cypriot regulator withdrew Maxigrid’s license last February after the company failed to comply with multiple mandatory requirements. Moreover, it led to the suspension of the services of Maxigrid’s trading brands.

Furthermore, earlier this month, CySEC initiated the compensation payment process for the clients of Maxigrid Ltd under the Investors Compensation Fund, mentioning the broker is “unable to meet its obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term arising out of investors' claims and has no early prospect of being able to do so.”