BrokerCreditService (BCS) Cyprus, an institutional broker and investment firm, has paid €100,000 to the Cyprus securities watchdog to settle ‘possible violations’ of the European Union’s market abuse laws and Cyprus’ market rules. The Cyprus Securities and Exchange Commission (CySEC) announced the settlement today (Wednesday), noting that the decision on the fine was reached in late April.

BCS Cyprus Settles with CySEC

CySEC said it probed BCS Cyprus for compliance with the EU rules on the prevention and detection of market abuse between 2019 and 2021. It also scrutinized the firm’s compliance with the authorization condition prescribed by Cypriot’s financial market laws.

BCS Cyprus, a member of the Association for Finance Markets in Europe, was licensed as a Cyprus Investment Firm (CIF) in 2004. The company offers institutional brokerage, investment banking and portfolio management services. In 2012, BCS expanded its services to include the execution of orders in forex spot trading transactions.

“[BCS Cyprus] provides electronic access through its trading system (CQG) for sale and purchase of derivatives on world major exchanges CME, Globex and CBOE,” the CIF wrote on its website. “US equities (NASDAQ, NYSE, AMEX) are available via placing voice orders to traders.”

Recent Enforcement Actions by CySEC

As the watchdog of Cyprus’s financial markets, CySEC regularly punishes firms utilising fines and settlements. Since the start of the year, the regulator has withdrawn at least five CIF licenses.

Last month, CySEC imposed a €50,000 administrative fine on FXBFI Broker Financial Invest Ltd, the operator of the now-shuttered CFDs broker brand, 101investing. The monetary penalty is said to settle the company’s lapses in complying with anti-money laundering and terror financing prevention requirements.

In the same month, CySEC subjected four CIFs to a symbolic fine of €100 for failing to submit their quarterly statistical reports for either the third or fourth quarter of 2022. The implicated firms are TriangleView Investments Ltd, Eight Plus Capital Ltd, Ayomi Financial Services Ltd, and IWG International Wealth Group Ltd.

Recently, CySEC announced that it plans to conduct on-site visits and desk-based reviews of selected CIF firms that provide investment services to retail clients. Through the visits, the regulator will evaluate how companies are complying with marketing communication rules prescribed by the Markets in Financial Instruments Directive II (MiFID II).

MiFID II, a European Union legislation that came into force in 2018, seeks to improve the transparency of the political bloc's financial markets as well as boost investor protection.

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