CySEC imposes another penalty. 175 000 EUR fines for Novox Capital

Cypriot regulator CySEC is on the attack again. The target is Novox Capital, which was fined EUR 175. We recently summarized the activities of CySEC in 000-2015 (read: CySEC has granted over EUR 300 million in penalties and revoked the 3 license). It seems that this year they are not planning to slow down or moderate their policies. The Novox Cypriot capital group, which manages several option brands, Forex and CFD, such as OptionBit (Optionbit.eu) ZoomTrader Global (Zoomtraderglobal.com) RoyalPip (royalpip.com) and NGN Broker (Ngnbroker.com).

The imposed financial penalty consists of as many as 6 violations of license conditions, and its largest part, amounting to EUR 70, is due to conducting investment advice without authorization. The other violations are:

• 10 000 EUR for failing to maintain proper internal control mechanisms when approving promotional materials,
• 20 000 EUR for improper third-party activities on the basis of outsourcing such as customer service and call center,
• 30 000 EUR for not acting in the best interest of the client,
• 30 000 EUR for sending advertising content by third parties, which misleads customers,
• 15 000 EUR for providing information unmatched to customers.

Full CySEC message