Last time we heard of the administrative services provider Mutual Trust Limited was when the Board of the Cyprus Securities and Exchange Commission (CySEC) extended the suspension of the company’s ASP license once more.
Now, almost a half year later, CySEC informed that has decided to impose a total administrative fine of €15.000 on the ASP Mutual Trust Ltd for noncompliance with:
1. Section 15(5) of the Law Regulating Companies Providing Administrative Services and Related Matters of 2012 (the Law), as in force from time to time, as it provided administrative services while its authorization was suspended, and
2. Section 17(2) of the Law, as it outsourced administrative services to third parties outside the Republic. In reaching its decision, the CySEC has taken into consideration the following:
- The importance attributed by the legislator to violations of this kind, which is reflected by the maximum administrative sanction provided for violations in the Law,
- The importance attributed to the need to ensure that the persons subject to the supervision of the CySEC fully comply with the provisions of the Laws and the relevant Directives,
- The seriousness attributed to the fact that the Administrative Services Providers (“ASPs”) must not provide any administrative services in case their authorization is suspended,
- The seriousness attributed to the fact that any outsourcing of the provision of administrative services by an Administrative Service Provider (“ASP”) can only be assigned to persons within the Republic
- As mitigating factor, the fact that the Company has not committed a similar violation in the past.