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After imposing a fine of EUR 300,000 on Pegase Capital Ltd in November last year, the Cyprus Securities and Exchange Commission (CySEC) today announced harsher measures against the company, which owns brands like binary options provider InteractiveOption.
CySEC announced the suspension of the Cyprus Investment Firm authorisation of Pegase Capital Ltd (number 225/14).
The penalty reflects violations of the Investment Services and Activities and Regulated Markets Law of 2007 and Directive DI 144-2007-01 of 2012.
In particular, the company violated the sections concerning:
- Persons who effectively direct the business of a CIF,
- CIF shareholders,
- Organisational requirements,
- Conduct of business obligations when providing investment services to clients,
- Professional Competence of Investment Firms and the Natural Persons employed by them.
The regulator also took into account that the aforementioned alleged violations may possibly endanger the company’s clients’ interests and the smooth operation of the capital market.
Pegase Capital Ltd is given one (1) month, to take actions in order to comply with the aforementioned provisions.
During the time of the suspension of the authorisation, the Company:
1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
2. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:
2.1. Close all open positions in relation to clients’ contracts, on their maturity date or on an earlier date, if the client so wishes.
2.2. Return to existing clients all of their funds and profits earned.
For the official announcement from CySEC, click here.