The broker Itrade Global receives a EUR 1 million penalty from CySEC

Cyprus Securities and Exchange Commission (CySEC) On April 13, 2023, it published a communication informing about the imposition of a financial penalty of EUR 1 million on the investment company Itrade Global (Cy) Ltd.. Details below.

Itrade Global fined EUR 1 million

According to a CySEC document, Itrade Global failed to implement policies and procedures to monitor the activities of its agent operating in Spain on behalf of the company. The law states that CIFs remain fully and unconditionally responsible for any acts or omissions by their agents acting on their behalf.

CySEC stated that the company violates the law, among others through the following points:

• CySEC stated that Itrade Global, through its tied agent, failed to ensure that natural persons providing clients with information about financial instruments, investment services or ancillary services on behalf of the Company had the necessary knowledge and competence to fulfill their obligations under the law.
• Itrade Global did not ask customers to provide relevant information regarding their knowledge and experience in order to assess whether the offered product or service is suitable for them.
• CySEC's decision also found the Company to be in breach of the articles of the act relating to the compliance function, product approval process and the obligation to retain telephone records.

There were a total of 7 objections from the regulator. As a result, Itrade Global, which includes brands such as InvestFW, TradeFW and Tradedwellit informed on suspending the admission of new retail customers. Operations were maintained only for existing retail clients and institutions.

Message on the broker's homepage. Source: https://www.investfw.com

CySEC Chairman Dr. George Theocharides commented:

“CySEC takes any misconduct by regulated entities seriously and is determined to stop non-compliant operations in order to enhance investor protection and grow the investment sector responsibly. CIFs are urged to ensure that they fully comply with their regulatory obligations, with an emphasis on strengthening their compliance functions and assessing the competence of their staff, in particular those of their sales and marketing functions. CySEC is strongly committed to the responsible development of the investment sector, backed by rigorous supervision to protect investors.”

The official CySEC message