CySEC fines Fiduserve €50,000 for compliance breaches; second major penalty in 2024, reinforcing regulatory commitment.
CySEC fines Fiduserve €50,000 for compliance breaches; second major penalty in 2024, reinforcing regulatory commitment.
CySEC Imposes €50,000 in Fines on Fiduserve Asset Management for Regulatory Violations. The regulatory action, the second significant penalty in 2024, underscores CySEC’s commitment to upholding industry compliance.
From June 2018 to October 2021, Fiduserve failed to obtain crucial information about investors’ financial situations, investment objectives, and risk tolerance levels, resulting in a €20,000 fine. This violation is in direct contravention of regulations mandating investment firms to recommend suitable financial instruments aligned with clients’ profiles and risk appetites.
CySEC also imposed a €15,000 penalty on Fiduserve for neglecting to provide periodic statements with required content to investors with leveraged portfolios between December 2018 and October 2021. The company further failed to notify investors when their portfolio values decreased more than 10% on multiple occasions from September 2019 to December 2020, resulting in additional penalties.
A €5,000 fine was levied for Fiduserve’s failure to send updated statements to investors detailing how their investments corresponded to their preferences, objectives, and characteristics during the same period. Lastly, the company received a €10,000 fine for providing investors with inaccurate, unclear, and misleading information.
The total administrative fine takes into account the gravity of the violations, with CySEC considering factors such as the company’s cooperation during the investigation and its clean record. This marks the second significant penalty by CySEC in 2024, following the €200,000 settlement with Fintailor Investments Ltd in February for potential anti-money laundering regulation breaches.
CySEC’s ongoing commitment to industry compliance is evident in its enforcement actions against various investment firms. In December 2023, settlements were reached with Naga Markets Europe Ltd and Begin Capital Markets for €150,000 and €50,000, respectively, addressing regulatory violations and reinforcing the regulator’s dedication to maintaining a compliant investment environment.
Moreover, CySEC has taken a proactive stance by issuing warnings to protect investors from unauthorized entities. In late February 2024, the regulator added ten new websites to its list of unauthorized service providers, demonstrating its continuous efforts to safeguard the interests of investors in the financial market.
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