CySEC announced on Tuesday the 25th of June 2013, that they had reached an 80,000 Euro settlement with Cypriot based brokerage Liquid Markets. The settlement was in regards to potential violations of Article 36 of the 2007 Investment Services, Activities and Regulated Markets law. According to the document released by CySEC, LQD Markets Ltd. had been offering investment services through third parties without first receiving the proper authorization from the regulatory authority.
According to CySEC, the maximum penalty for a transgression of Article 36 is a maximum fine of 350,000 Euros. The fine being calculated in accordance with the severity of the regulatory breaches. CySEC has gone onto confirm that LQD Markets Ltd have ceased the said relationships with the said third party entities. The company has also paid up the full 80,000 Euro amount to the regulator. Very little detail was provided by the regulator in regards to the nature of the potential regulatory violations that Liquid Markets were meant to have been engaged in.
CySEC’s 80,000 Euro settlement with the company comes after a spate of regulatory rulings by CySEC. Just last week the regulator fined Trading Point of Financial Instruments a total of 10,000 Euros for two breaches of the 2007 Investment Services, Activities and Regulated Markets Law. With Binary Options provider TDOConsulting being fined the week beforehand, for operating from Cyprus without the necessary CySEC regulation. Cyprus’s regulator has been very active in recent weeks and it will be interesting to see whether CySEC comes out with any other announcements in the following weeks.