CySEC Reaches €150,000 Settlement with Purple Trading

The Cyprus Securities and Exchange Commission (CySEC) has announced a settlement agreement totaling €150,000 with L.F. Investment Ltd, which operates the Purple Trading brokerage brand. The settlement addresses possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 and the Regulation (EU) No. 600/2014.

CySEC stated that its power to reach settlements for possible violations falls under Article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009. The investigation leading to this settlement specifically assessed L.F. Investment Ltd's compliance between July 2021 and October 1, 2023, concerning several key areas. These include organizational requirements for Cyprus Investment Firms (CIFs) under Article 22(1) of the Law, conflicts of interest under Article 24(1), general principles and information for clients under Article 25 (sections 1 and 4a), obligations regarding the appointment of tied agents under Article 30(2b), and compliance with product intervention measures, particularly CySEC's Directive DI87-09 on the restriction of marketing, distribution, and sale of contracts for difference (CFDs) to retail clients, as per Article 42 of the Regulation.

The company has already paid the €150,000 settlement amount. CySEC notes that funds from such settlement agreements are categorized as revenue for the Treasury of the Republic of Cyprus and do not contribute to CySEC's own income.