CySEC Announces €290,000 Settlement with Mount Nico Corp Ltd

The Cyprus Securities and Exchange Commission(CySEC) yesterday announced that it has reached a settlement agreement with Mount Nico Corp Ltd, holding a Cyprus Investment Firm (CIF) license.

As part of the settlement, the company has paid €290,000 to CySEC for possible regulatory violations. 

According to the Cypriot watchdog, the broker has possibly violated the Investment Services and Activities and Regulated Markets Law of 2017 ("the Law") a and the Directive DI144-2014-14 of the Cyprus Securities and Exchange Commission for the Prudential Supervision of Investment Services Firms. 

More specifically, the investigation for which the settlement was reached, is related to the findings concerning, the period of February 2020 to December 2020, with regard to the company's compliance with:

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

2. Article 22 (1) of the Law regarding the obligation of continuous compliance with the conditions of CIF authorisation and specifically with articles 17(3)(c) (specifying an identified target market) and 17(9) (safeguarding of clients rights of the Law).

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

4. Paragraph 21(g) of the Directive DI144-2014-14 regarding the variable elements of remuneration.

5. Article 25, sections (1) and (3), of the Law regarding the general principles and information addressed to clients.

6. Article 26(3)(a) of the Law, Law regarding the assessment of suitability and appropriateness and reporting to clients.