Recently, the Cypriot financial regulator CySEC has shown its ability to be a tough supervisor as it performed couple of review series and monitored the activity of brokerage house in forex or binary options market. This has ended with a relatively high fines for the island, which got accustommed to easier behaviour of tis watchdog.
Moreover, CySEC seems to be regaining its real authority and points to the fact that these are only first waves of its review.
In January 27, Cysec fined the Banc de Binary broker and Rodeler Limited (parent of 24option, 24FX, GrandOption and QuickOption). The settlement reached €350,000 with Banc de Binary (the highest one recently) and a €156,000 settlement with Rodeler Limited.
The second fine provided even more information about its composition. Here is a summary:
- €10,000 – handling of client complaints, other admin issues
- €20,000 – managing operational risk
- €30,000 – not acting fairly in regards to client bonuses
- €30,000 – misleading advertising
- €40,000 – not properly assessing clients for appropriate trading
This shows a warning finger for other subject on the forex and binary options market under the CySec authority, which seems that is is not going to finish its series of sanctions, already high for the island.
Maybe you have been thinking about the fact the these settlements reached even higher amounts than the actual fines with Banc de Binary being the leader in this category. It could be caused by an agreement with CySEC to sum up and pay everything immediately and quietly, not catching too much attention.
Companies that did not agree to settle and were about to negotiate further about any adjustment to the settlement, could win with lower fine, but higher attention of press, what causes naturally harm in the forex market, when trying to reach new clients and their confidence.
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