Cyprus
financial regulator CySEC announced it reached a €50,000 settlement with FX and
CFD solutions provider Broctagon Prime over possible violations of client
information requirements that occurred in 2021.
The Cyprus
Securities and Exchange Commission (CySEC) said the settlement covers potential
breaches of rules requiring proper disclosure of information to clients. The
violations allegedly happened during the third quarter of 202, when Broctagon
Prime Ltd may have failed to follow general principles for providing
information to customers.
Broctagon Prime Pays €50K
to Settle Cyprus Regulator Dispute
CySEC
investigated whether the company violated articles 25(1) and 25(3)(a) of Cyprus
investment services law, which govern how financial firms must communicate with
their clients. The regulator didn’t specify exactly what information Broctagon
Prime failed to provide or how the alleged violations occurred.
Broctagon
Prime, which operates as a liquidity and technology provider for FX and CFD
trading, has already paid the full settlement amount. The company holds a
market maker license from CySEC and has been regulated by the authority since
2017.
The
settlement represents the second penalty CySEC has announced this year
involving a Cyprus-based financial firm. In May, the regulator reached a
separate €20,000 settlement with ZFN Europe Ltd over licensing violations.
CySEC
emphasized that settlement funds go directly to Cyprus’s treasury rather than
to the regulator itself. The commission has authority under Cyprus law to
settle potential violations when it believes reasonable grounds exist that
rules were broken.
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Broctagon FinTech Group
Broctagon
Prime operates as part of the Broctagon FinTech Group and provides trading
services across multiple asset classes including spot foreign exchange,
commodities and contracts for difference. The company targets both retail
traders and institutional clients.
In April,
FinanceMagnates.com reported that the company incorporated Takeprofit Tech’s
investment management solution into its brokerage platform, enabling foreign
exchange brokers to manage multiple customer accounts using a mini-hedge fund
structure.
The
settlement doesn’t constitute an admission of wrongdoing by Broctagon Prime,
and CySEC’s announcement didn’t indicate whether the company faced any
additional restrictions on its operations.
This article was written by Damian Chmiel at www.financemagnates.com.
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