The Cyprus Securities and Exchange Commission (CySEC) has slapped Royal Forex Ltd with a regulatory fine due to shortcomings in its organizational obligations and other infringements.
The administrative fine was imposed after CySEC concluded its investigation into violations made by Royal Forex, which operates through www.royalforex.com and www.ROInvesting.com. The company agreed to pay €120,000 to resolve charges that it violated the Cypriot investment laws during the period between July 2020 and October 2021.
According to a CySEC announcement, the ruling is related to the transparency requirements in relation to information provided to clients. The brand was also flagged for non-compliance with authorization conditions stated in many articles, which mainly concern the appropriateness of their products offered to certain client segments.
The deficiencies, cited in the regulator’s order against Royal Forex, included weaknesses in the company’s compliance with the following articles:
- Article 22 (1) of the Law, as to the authorisation condition laid down in article 17(6) of the Law, regarding the organisational requirements with which a CIF is required to comply.
- 2Articles 25(1) and 25(3) of the Law regarding the general principles and information addressed to clients.
Additionally, the Cysec’s website shows that Royal Forex is currently under examination for voluntary renunciation of its authorisation. Although the regulator didn’t clearly state why the company decided to say goodbye to its CIF authorization, the last few years saw many regulated brokers opt to voluntary surrender their license, and not as a result of any regulatory issues.
Royal Forex has a considerable global presence and offers CFDs in several markets including forex, cryptocurrencies, indices, stocks and commodities.
After several months of pause, the Cypriot regulator is once again flexing its muscles and actively finding compliance irregularities. The news about the settlement with Royal Forex comes a few weeks after it hit Magnum FX Ltd (trading as ET Finance) and F1Markets Ltd (trading as Investous, StrattonMarkets and Europrime), with a €150,000 fine each.
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2022-11-17 19:42:00Z
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