CySEC Imposes €100,000 Fine on Wonderinterest Trading Over Compliance Breaches

The Cyprus Securities and Exchange Commission (CySEC) has fined Wonderinterest Trading Ltd €100,000 after identifying multiple breaches of investment services regulations, according to a regulatory announcement. The violations were found to have occurred between 2022 and 2024 and related to the firm's conduct as a Cyprus Investment Firm.

Wonderinterest Trading Ltd provides contracts for difference (CFD) trading services under its own CySEC licence and through related brands, including Zetano and Investago. The company offers CFDs on forex, shares, commodities, and indices, as well as trading in physical shares.

Authorisation and Governance Failures

CySEC said the largest portion of the penalty, €50,000, was imposed for breaches of authorisation requirements. According to the regulator, the company "did not establish adequate policies and procedures" and "did not specify an identified target-market of end clients for each financial instrument." It also found that the firm failed to ensure that "all relevant risks to such identified target-market were assessed."

The regulator stated that these shortcomings were identified following a review of Wonderinterest's compliance with the Investment Services and Activities and Regulated Markets Law, covering areas such as authorisation conditions, client treatment, and marketing practices.

Marketing and Client Treatment Issues

An additional €30,000 fine was imposed after CySEC concluded that the firm "did not act honestly, fairly and professionally" in providing investment services to clients. A further €20,000 penalty related to deficiencies in marketing and client communications, with the regulator stating that the information provided was not "fair, clear and not misleading."

In determining the total fine, CySEC said it took into account the importance of effective internal controls and investor protection. The regulator noted that safeguarding clients depends on clear information that supports informed decision-making and on distributing financial instruments to appropriate target markets following proper risk assessments.

Finance Magnates contacted Wonderinterest Trading Ltd for comment, but no response had been received at the time of publication.

Warning on Unauthorized Investment Websites

Separately, CySEC announced that it has added 21 websites to its list of unauthorized platforms offering investment services. The regulator said some of these sites appear to mimic licensed brokers but do not hold the required authorisation under Cypriot law.

CySEC advised investors to verify the licensing status of firms through its official public register. It also warned against fraudulent emails claiming to represent the commission, emphasizing that it does not request or accept payments from individuals.