CySEC Settles with Depaho for €270,000 over Possible Compliance Lapses

The Cyprus Securities and Exchange Commission (CySEC) announced on Tuesday its settlement with 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 and contract for difference broker Depaho Limited for €270,000.

Depaho is operating through its brand name, FXGM and provides services under the domain name www.fxgm.com. The company received a CIF license from the Cypriot regulator in 2011 and purchased the FXGM brand in 2013 from FX Global Markets (FXGM), which in turn renounced its license in the same year.

In the latest notification, the regulator stated that it settled with the brokerage for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 for its activities between January 2018 and July 2019.

The regulator detailed that the brokerage had possibly violated the requirements for CIF authorization, compliance with organizational requirements, order execution requirements, principles and information of clients, and further had a conflict of interest.

Notably, Depaho had a similar settlement in 2015 from the Cypriot regulator for non-compliance of several regulatory requirements.

Hunting for Non-Compliance

As Finance Magnates regularly reported, the 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 imposed heavy fines on multiple brokers, including Rodeler, Tradernet, and XTrade Europe, for lapses in compliances.

“CySEC...has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulator noted.

Meanwhile, the Polish financial regulatory body warned against CySEC-licensed Depaho last year for offering services in the country without any authorization from it.