CySEC Slaps London Capital Group Cyprus with €40.000 Fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has decided to impose an administrative fine of €40,000 to London Capital Group (Cyprus) Ltd at its meeting held on the 5th April 2021.

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The Cyprus regulator detailed that the company does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, failing to comply with the article 16(2) of Regulation (EU) 596/2014 on market abuse.

In deciding the disciplinary action, the authority considered it needed to send a clear deterrent message about LCG’s lapses and highlight weaknesses in supervision systems covering the staff’s handling of trading activities.

As of press time, there is no an official statement coming from the broker about the decision taken by the Cypriot financial watchdog.

The CySEC has suspended or withdrawn licenses of several forex brokers that were caught up in promoting their risky products in the UK, including Indication Investments, Globia Wealth, Depaho and so on.

Last week, the commission issued a notice warning against an imposter website​ in India that posed as real CySEC website.