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The Cyprus Securities and Exchange Commission (CySEC) has imposed a €200,000 fine on the Cyprus Investment Firm (CIF), IC Markets (EU) Ltd, for violating leverage rules.
According to a press release, CySEC found that IC Markets (EU) Ltd had violated regulations concerning leverage through a related entity in another country. Specifically, the firm facilitated leverage of up to 1:1000 through a third-country entity, bypassing the legal limit of 1:30.
CySEC Chairman George Theocharides stated, "We take any misconduct by supervised entities seriously and are determined to halt non-compliant operations to enhance investor protection and the responsible growth of the investment sector."
The commission noted that IC Markets (EU) Ltd's actions knowingly and intentionally aimed to evade rules designed to protect investors by limiting leverage. This breach was not a one-time occurrence; the firm had committed a similar violation in 2021, despite previously assuring CySEC that it would take corrective measures.
In deciding the fine, CySEC considered the importance of full compliance with the law, the duration of the violation, the financial strength of the firm, and the repeated nature of the infringement. The regulator emphasized the seriousness of CIFs’ obligations to adhere to restrictive measures aimed at protecting investors.
[With information from CNA]
