CySEC Bares Its Teeth: Trading Point Fined €5,000 For Infringement of Client Funds Regulations
by
Andrew Saks McLeod
Cypriot regulator CySEC today demonstrated its commitment to monitoring of the administrative and compliance procedures of brokers in its jurisdiction by imposing a €5,000 administrative penalty on Trading Point.
The best interests of customers is one aspect that is very much at the forefront of the agendas of regulatory authorities around the world at the moment, and the protection of deposited funds which are held by FX companies is no exception.
Today, Cypriot regulator CySEC has announced that it has imposed a €5,000 administrative penalty on Trading Point of Financial Instruments Ltd for a transgression of Article 18 of the Investment Services, Activities and Related Markets Law of 2007 and an infringement of Directive DI144-2007-01 of CySEC's licensing conditions.
These offences related in particular to Trading Point's failure to comply with the organizational requirements of the law to make sufficient provisions to protect and indemnify client funds whilst in the custody of the company. CySEC also cited that there were irregularities in the firm's attention to the Anti Money Laundering (AML) procedure.
In other regions, there have been similar cases this year with regard to the regulators indicating a need to tighten the rules relating to the funds held by FX brokers which are deposited by clients for the purposes of funding trading accounts.
Examples of this focus on an international scale have been evident in Britain's FSA (now FCA) having implemented a very detailed Client Asset (CASS) procedure backed up by the conducting of regular inspections, XCap having fallen foul of that two weeks ago, and last October's considerations by Australia's ASIC to increase the minimum requirement for capital adequacy.
ASIC then continued along these lines and made use of its installation of the First Derivatives Delta Stream surveillance system to unearth irregularities in City Index's procedure for handling of client funds.
Cyprus Ups Its Game
At this year's Forex Magnates IFXEXPO in Cyprus, the Regulation Panel hosted a series of lawyers, during which conversation moved quickly onto the subject of CySEC's willingness to crack the whip if procedures are not followed.
Panel moderator Jason Ballor asked the panel: “FSA fines a lot of people – CySEC seem to fining people. This is more in line with the FSA. Are they moving in that line?”
Advocate Angelos Paphitis, Founder & CEO at A.G.Paphitis & Co LLC added: “This is not to do with moving in line, it is supposed to be that way regardless. This is not to do with emulating the FSA, it is part of the job of the regulator.”
Marios Cosma, Owner at K Treppides & Co said “CySEC is a user-friendly organization, and has improved dramatically with time”.
During that day, Demetra Kalogirou, the Chairman of CySEC addressed the delegates by delivering a thirty minute long speech on CySEC's commitment to evolving the regulatory structure in Cyprus to demonstrate the regulator's commitment to creating further confidence in Cyprus' FX industry following the country's banking crisis, and to help secure its future.
Although a definite emphasis was placed on the regulator's intention to support the industry, Ms Kalogirou made it clear that CySEC intends to be regarded as a world-class regulator and therefore takes action where necessary.
With these factors in mind, it is becoming apparent that CySEC is on the lookout. According to Forex Magnates sources, CySEC has legal proceedings intended for other Cypriot companies in its sights during the week ahead, full details of which will be reported by Forex Magnates in the coming days.
The best interests of customers is one aspect that is very much at the forefront of the agendas of regulatory authorities around the world at the moment, and the protection of deposited funds which are held by FX companies is no exception.
Today, Cypriot regulator CySEC has announced that it has imposed a €5,000 administrative penalty on Trading Point of Financial Instruments Ltd for a transgression of Article 18 of the Investment Services, Activities and Related Markets Law of 2007 and an infringement of Directive DI144-2007-01 of CySEC's licensing conditions.
These offences related in particular to Trading Point's failure to comply with the organizational requirements of the law to make sufficient provisions to protect and indemnify client funds whilst in the custody of the company. CySEC also cited that there were irregularities in the firm's attention to the Anti Money Laundering (AML) procedure.
In other regions, there have been similar cases this year with regard to the regulators indicating a need to tighten the rules relating to the funds held by FX brokers which are deposited by clients for the purposes of funding trading accounts.
Examples of this focus on an international scale have been evident in Britain's FSA (now FCA) having implemented a very detailed Client Asset (CASS) procedure backed up by the conducting of regular inspections, XCap having fallen foul of that two weeks ago, and last October's considerations by Australia's ASIC to increase the minimum requirement for capital adequacy.
ASIC then continued along these lines and made use of its installation of the First Derivatives Delta Stream surveillance system to unearth irregularities in City Index's procedure for handling of client funds.
Cyprus Ups Its Game
At this year's Forex Magnates IFXEXPO in Cyprus, the Regulation Panel hosted a series of lawyers, during which conversation moved quickly onto the subject of CySEC's willingness to crack the whip if procedures are not followed.
Panel moderator Jason Ballor asked the panel: “FSA fines a lot of people – CySEC seem to fining people. This is more in line with the FSA. Are they moving in that line?”
Advocate Angelos Paphitis, Founder & CEO at A.G.Paphitis & Co LLC added: “This is not to do with moving in line, it is supposed to be that way regardless. This is not to do with emulating the FSA, it is part of the job of the regulator.”
Marios Cosma, Owner at K Treppides & Co said “CySEC is a user-friendly organization, and has improved dramatically with time”.
During that day, Demetra Kalogirou, the Chairman of CySEC addressed the delegates by delivering a thirty minute long speech on CySEC's commitment to evolving the regulatory structure in Cyprus to demonstrate the regulator's commitment to creating further confidence in Cyprus' FX industry following the country's banking crisis, and to help secure its future.
Although a definite emphasis was placed on the regulator's intention to support the industry, Ms Kalogirou made it clear that CySEC intends to be regarded as a world-class regulator and therefore takes action where necessary.
With these factors in mind, it is becoming apparent that CySEC is on the lookout. According to Forex Magnates sources, CySEC has legal proceedings intended for other Cypriot companies in its sights during the week ahead, full details of which will be reported by Forex Magnates in the coming days.
7% Daily Profit? Regulator Warns of Potential Scam
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔