UFX - 100.000 EURO Penalty from CySEC

f-man

4Xangels Representative
Messages
762
CySEC has announced that UFX (Reliantco Investments Ltd) has paid a penalty of 100.000 EURO for violating the Investment Services and Activities and Regulated Markets Law of 2007!
 

Attachments

  • UFX Decision.pdf
    127.7 KB · Views: 43

SAMIR444

Recruit
Messages
1
cysec made a recall for their fine against Reliantco Investments Ltd. How is that possible such a highly respected regulator fines a broker and then makes a recall. really disappointing
 

BigT1

Sergeant Major
Messages
951
cysec made a recall for their fine against Reliantco Investments Ltd. How is that possible such a highly respected regulator fines a broker and then makes a recall. . .

Hello new member SAMIR444,
.
Thank you for bringing this to our attention!
Indeed, the notice has been recalled; however, that does not mean the fine is nullified, nor the decision is reversed.
Likely, there has been such an outcry against the quality of the decision, a rework of the decision is probably under consideration.
I would wait a week before coming to any conclusions.
.
Regarding the respectability of CySec, my prior remarks stand; this is just more evidence of the lack of such.
Find the Recall Notice attached.
.
AI
 

Attachments

  • Announcement 01.31. 2013 regarding recall of announcemnet for Reliantco Investments Ltd.pdf
    13.3 KB · Views: 14
Last edited:

Pharaoh

Colonel
Messages
19,994
Unfortunately, neither document says why the fine was levied or why it was recalled the same day.

Personally, I find the whole thing strange. Cysec doesn't move often and doesn't move fast. I'd have to say that an announced fine and recalling the fine announcement in the same day is very unusual.
 

BigT1

Sergeant Major
Messages
951
. . . I find the whole thing strange. Cysec doesn't move often and doesn't move fast. I'd have to say that an announced fine and recalling the fine announcement in the same day is very unusual.

Smacks of Greek government bureaucrats desperate for cash, sandwiched between powerful external EU financial interests, and the rule of Law and the public interest.
.
AI
 

LoveToForex

Recruit
Messages
3
Lots of the big investment banks reach these kind of agreements where they pay a hefty fine and admit no wrongdoing, when the investigation and proceedings would be costly. If I remember correctly Goldman Sachs settled for $550m in 2010 and thus didn't have to admit wrongdoing, this appears to be what happened with UFX Markets and Cysec. However I believe a number of adverts issued and placed on major advertising networks by UFX Markets are in preach of MiFID regulation in regards to advertising standards (a violation of Article 36 (1) (a) of the Investment Services and Activities and Regulated Markets Law, and paragraph 6 of Directive DI144-2007-02) so I do feel that some action could have been easily taken by Cysec without the need to settle in such a manner.
 

LoveToForex

Recruit
Messages
3
CySec today re-issued its Announcement previously issued then withdrawn on Jan 31, 2013, with some changes:
http://www.cysec.gov.cy/Downloads/E...nt reached with Reliantco Investments Ltd.pdf
I saw over at Forex Magnates and another site that the reason for the fine appears to be the fact that UFX Markets weren't really operating from Cyprus with the company not having any real physical presence in the jurisdiction. With the UFX Markets representative stating that Cysec fine related to the 'Company’s disproportionate high growth rate compared to its increase in personnel' and in response to such concerns Reliantco would 'In an effort to satisfy CySEC’s requirement the Company shall continue to expand its team of global financial experts at an increasing rate specifically at its Cyprus head office'. It will be interesting to see whether UFX Markets go on to establish a proper physical presence in Cyprus.
 
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