​CySEC Settles with Key Way Investments for €120,000 over ‘Possible Violations’

The Cyprus Securities and Exchange Commission (CySEC) released its settlement with Cyprus investment firm Key Way Investments Ltd. for €120,000 over possible violations.

The regulator has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation.

In the latest notification, CySEC stated that it settled with the brokerage for possible violations of The Investment Services and Activities and Regulated Markets Law of 2017 (“the Law”) .

The Cyprus regulatory body detailed that the CIF firm had possibly violated the requirements for CIF authorization, compliance with organizational requirements, order execution requirements, principles and information of clients, and further had a conflict of interest.

More specifically,the onsite inspection taking place in June 2019 for which the settlement was reached, involved assessing the Company’s compliance with:

1. Article 5(1) of the Law, regarding the requirement for CIF authorisation.

2. Article 22(1) of the Law, as to the authorisation condition laid down in article 9(16) of the Law, regarding the management body and in article 17, paragraphs (4) and (6), of the Law, regarding the organisational requirements with which a CIF is required to comply.

3. Article 24 of the Law, regarding conflicts of interest.

4. Articles 25(3) of the Law, regarding general principles and information to clients.

5. Paragraphs 5, sub-paragraphs (2), (5) and (6), of the Directive for the Certification of Persons and the Certification Registers (R.A.C. 44/2019), regarding certified persons.

It is noted that the Company has already paid CySEC for a settlement.