LCG broker with a fine from CySEC for 40 thousand. EUR

Cypriot financial regulator, CySEC, informed about the imposition of a financial penalty in the amount of 40 euros on the broker LCG - London Capital Group (Cyprus) Ltd, coming from Great Britain.

LCG with a fine of 40 EUR

The management board of CySEC announced on August 13 that at its meeting on April 5, 2021, it decided to impose an administrative penalty of EUR 40 on London Capital Group (Cyprus) Ltd for failure to comply with Art. 000 sec. 16.) of Regulation (EU) 2/596 on market abuse, further specified in Art. 2014 and art. 2 sec. 3 of Delegated Regulation (EU) 8/2016 supplementing Regulation (EU) 957/596. This article deals with the procedures for monitoring, detecting and reporting suspicious orders and transactions.

In particular, CySEC stated that LCG does not keep information justifying the analysis it should be carrying out on "suspicious" transactions it has carried out for which there are suspicious signals. This, in turn, could constitute an abuse of privileged information, market manipulation or abuse attempts.

When determining the amount of the fine, the regulator said it took into account the following factors:

• The seriousness that the legislator attaches to such violations is reflected in the amount of the administrative penalty provided for in The Market Abuse Act 2016 for such violations.
• Importance to keep records of analyzes carried out for suspicious orders and transactions, to detect market abuse, to demonstrate compliance with the requirements of Regulation 596/2014 and to facilitate CySEC's performance of its duties.
• As a mitigating factor, the fact that the company has not committed a similar breach in the past.

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