The Cyprus Securities and Exchange Commission announced on Tuesday it has reached a settlement with retail brokerage operators F1 Markets Ltd and Magnum FX (Cyprus) Ltd for “possible violation” of the law.
As part of the settlement, each of the Cyprus investment firms (CIFs) paid €150,000. CySEC detailed that its decision was taken on 14 March 2022.
The Cypriot regulator further detailed that the settlement with F1 Markets follows assessment of the compliance measures the firm took to fulfill the conditions of its partial suspension and other corrective actions taken between June 2019 and July 2020.
The regulatory concerns were related to the firm’s CIF license conditions, organizational requirements , conflict of interest, elements of remuneration and general principles and information to clients.
CySEC’s settlement with Magnum FX came after an investigation, following an onsite inspection in the company regarding the period from January 2019 to July 2020.
Similarly to F1 Markets, the regulatory watchdog flagged concerns with the firm’s CIF license requirements, compliance with operating license conditions, conflict of interest, elements of remuneration and general principles and information to clients.
UK Financial Conduct Authority banned Magnum FX and F1 Markets in June 2020 from offering CFDs in the UK for using unauthorised celebrity endorsements on social media as part of their marketing.