Itrade Global (CY) Ltd Fined €1,000,000 by CySEC for Multiple Violations

​The Board of the Cyprus Securities and Exchange Commission (CySEC) decided to impost a total administrative fine of €1,000,000 to Cyprus investment firm Itrade Global (CY) Ltd for multiple violations of The Investment Services and Activities and Regulated Markets Law of 2017.

Specifically, Itrade Global was fined €240,000 under Section 22 of the Law as it failed to establish adequate policies and procedures sufficient to ensure its compliance with its obligations, failed to specify an identified target market of end clients, and did not ensure that all relevant risks to such identified target market were assessed and that the intended distribution strategy was consistent with the identified target market. It also failed to keep records of telephone conversations with all the services provided and the activities/transactions it performed.

Itrade Global was also fined €130,000 for violation of Section 25(1) of the Law, as the company did not act honestly, fairly and professionally when providing investment or ancillary services to clients, in accordance with the best interests of its clients, taking into account the actions/practices of the call centre staff of the tied agent acting on behalf of the Company in Spain.

It was fined another €110,000 under Section 25(3) of the Law for failing to ensure that all information provided to clients or potential clients through its website, its marketing communications and the call centre of the tied agent acting on its behalf in Spain was fair, clear and not misleading.

Itrade Global was fined €80,000 for violation of Section 26 of the Law, as the company, through the tied agent it appointed to act on its behalf in Spain, did not ensure that the natural persons giving information to clients on its behalf, who were employed by the tied agent, had the necessary knowledge and competence to fulfil their obligations. It was also fined €80,000 for violation of Section 26 as it didn't require the clients or potential clients to provide all necessary information.

The firm was fined €240,000 for violation of Section 30 of the Law, as it failed to monitor the activities of the tied agent appointed to act on its behalf in Spain, so as to ensure that it continued to comply with the Law, even when acting through a tied agent.

CySEC plays an important role in the financial industry, and many financial institutions and investors who purse a high-level regulatory environment seeks its regulation. According to the annual summery for 2022 released by CySEC​, the number of supervised by the regulator entities totaled 837 at the end of 2022, growing 3.9% from 2021's 806.