FxNet with 60 000 EUR fine from CySEC

The Cyprus financial market regulator, CySEC, issued a communiqué announcing the imposition of a financial penalty on FxNet Ltd .. As a result of the agreement, the fine was EUR 60 000.

60 000 EUR for numerous offenses

The FxNet Limited company, to which the FXNET brand belongs, is registered in Limassol in Cyprus. The broker has been active on the market since 2013, and its offer is based primarily on instruments CFD and platform MetaTrader 4.

During the audit, CySEC detected violations of licensing regulations that should be implemented by Cypriot investment companies. The offenses mainly concern the lack of compliance of relevant rules and procedures with applicable regulations, as well as non-compliance with business obligations related to the provision of investment services.

In addition to having to pay a financial penalty, the broker is forced to close the irregularities and comply with regulatory conditions. Otherwise, the next reaction may be a temporary suspension of the license or even its permanent withdrawal. The fine was imposed by CySEC 27 on September this year, but in practice such actions are often taken even 6 months after the negligence is detected, which means that they may have already been removed.

The official CySEC message (PDF in Greek)