Cyprus financial regulator CySEC has issued a €100,000 fine Colmex Pro Ltd for a series of compliance issues discovered by the regulator.
The €100,000 fine breaks down as follows:
- €40,000 for nor properly informing clients of appropriate risks of trading,
- €30,000 for misleading advertising,
- €20,000 for operational risks not being properly addressed,
- €10,000 for other compliance and administrative issues.
Colmex sister company Colmex Israel, or formally TGL Colmex Capital Markets Ltd, recently became just one of six companies to receive a Forex Dealers license in Israel. The company then bought out competitor Matach24, beginning what we believe will be increased consolidation in the Forex sector in both Israel and elsewhere, as increased regulatory scrutiny is making it harder for smaller operators.
The full CySEC description and breakdown of the fine can be seen here (in Greek only).