The Cyprus Securities and Exchange Commission (CySEC) reached a settlement of €150,000 with NAGA Markets Europe.
The meeting where the regulatory decision was taken took place in March 2023. However, the decision announced today.
The settlement is in accordance with Article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, which gives the Cyprus Securities and Exchange Commission the power to reach a settlement for any breach or potential breach, act or omission for which there is reasonable cause to believe that it has received country in violation of the provisions of the supervised legislation of the CySEC.
The settlement concerns potential violations of the Investment Services and Activities and Regulated Markets Act of 2017.
In particular, the investigation for which the settlement was reached concerned the assessment of the company’s compliance, for the period from January 2021 to April 2022, following a desk-based assessment and other information, regarding:
- Article 22 paragraph 1 of the Law regarding the authorization conditions and in particular regarding the conditions defined in Article 5 paragraph 5 point b) and Article 17 paragraph 2 of the same law regarding the requirement for CIF authorization and the organizational requirements with the which a CIF is required to comply with.
- Article 25, sections (1), (2) (a) (iii), (2) (b) and (3) (a) of the Law on general principles and information addressed to customers.
- Section 26, subsection (2)(a) of the Act, relating to assessment of suitability and suitability and reporting to clients.
- Article 28, paragraph (7) of the Law, regarding the obligation to execute orders on terms more favorable to the customer.
- Article 42 of Regulation (EU) 600/2014 regarding Product Intervention by the competent authorities.
The settlement reached with the company is for the amount of €150,000, which the company has already paid.
Amounts owed in settlement agreements are counted as income (revenue) to the Ministry of Finance of the Republic and do not constitute income of the Greek Cypriot Association.
NAGA Group was recently sold to Capex.com.