The Cyprus Securities and Exchange Commission (CySEC) has just announced that it reached a settlement with Key Way Investments Ltd, fining the firm €120,000 for violating the Investment Services and Activities and Regulated Markets Law.
The enforcement action was a result of the compliance onsite investigation started by the regulator back in June 2019.
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Cyprus Investment Firm (CIF) Key Way is regulated by CySEC and therefore has to comply with Cypriot regulations in order to maintain its CIF trading license, which enables the broker to offer its services across Europe, the watchdog stated.
The CySEC fine reflects the violations of several articles of the Investment Services and Activities and Regulated Markets Law.
More specifically, the fine was for non-compliance with Article 5(1) of the Law, regarding the requirement for CIF authorization and Article 22(1), which concerns certain authorisation conditions and organisational requirements with which a CIF is required to comply. CySEC has further explained that the fiscal penalty was also imposed for non-compliance with other articles that cover multiple regulatory requirements, including conflicts of interest, information provided to clients and certified persons.
CySEC ordered the company to take corrective measures within a set framework. However, it is important to note that fines are usually issued within 6 months of an inspection, so at the point of the fine, the majority of issues should have already been resolved.
After several months of pause, the Cypriot regulator is once again flexing their muscles and actively finding compliance irregularities. The news about the settlement with Key Way Investments comes a few months after the CySEC fined XTrade Europe Ltd €200,000 due to shortcomings in the company’s anti-money laundering programs.
Accurate details of the settlement haven’t yet been made public, however the violations are related to the general principals of conduct related to the Money Laundering and Terrorist Financing Law.
Earlier in September, the Cypriot watchdog told licensed CIFs that they will need to provide information on cross border activity during the period spanning from 1st January to 31st December 2019
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