Although the fine remains shrouded in mystery as to what UFX was actually charged with doing.
Cyprus’ financial regulator CySEC disclosed today it had fined UFX Markets (or more specifically, its regulated parent holding company Reliantco Investments Ltd) the sum of €100,000, The fine followed a CySEC investigation “for reasonable suspicion of committing possible violations” of Cyprus’ investment services law. The fine was part of an agreed settlement (or what CySEC called “a compromise”) with UFX — UFX promptly paid the fine, and continues to be in good standing with CySEC.
Most previous CySEC violations and fines have been for sundry administrative matters — late filings, incorrect wording on marketing materials, etc. — and we have no reason to believe that the UFX fine was for anything but administrative mistakes, despite the large size of the fine.
UFX Markets has had some interesting run-ins with financial regulators in some unusual places — in February of last year one of Canada’s provincial regulators, the Saskatchewan FSC issued a cease order against UFX barring it from acquiring customers there. And in November 2011 Belgium’s FSMA warned against doing business with UFX, which then branded itself UFX Bank, as it “improperly presents itself as a bank.”
For the full text of CySEC’s announcement on the matter click here.
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