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Screenshot of a breaking news alert e-mail from Q2 2017
The Board of the Cyprus Securities and Exchange Commission (CySEC) just informed investors that decided to impose an administrative fine of €20.000 to the CIF UR Trade Fix Ltd (the parent company of Tradeo) for noncompliance with section 6(8) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (the Law), as the Company provided the investment service of portfolio management without this service being stated in its authorisation.
In reaching its decision, CySEC has taken into consideration the following factors:
- The importance attributed by the legislator to violations of this kind, which is reflected by the maximum administrative sanction provided for violations of section 6(8) of the Law, in section 141 of the Law, i.e. €350.000.
- The gravity attributed to the need to ensure that the persons subject to the supervision of the CySEC comply fully with the provisions of the Law and the relevant Directives.
- The importance of holding a CIF authorisation for providing investment services.
- The seriousness attributed to the fact that CIFs must act within the limits of their authorisation, which safeguards the interests of their clients and contributes widely to the strengthening of investor confidence in the capital markets.
As mitigating factors that:
- The Company has applied for obtaining an authorisation for portfolio management.
- The Company has not committed a similar violation in the past.
Tradeo management provided LeapRate with an official statement regarding the fine:
Regarding CYSEC Board Decision as of 24 April 2017.
Tradeo is one of the world’s most prominent companies in the field of social trading, and a leader in innovation and technology in the online trading world.
Tradeo (UR Trade Fix Ltd) has applied for obtaining an authorization for portfolio management 8 months ago (15.8.16), and we now expect to receive the extension within the upcoming weeks.
We look forward for continued fruitful cooperation with Cysec in the future.
The complete announcement from CySEC can be seen here.