Cypriot Regulator CySEC Slams €50,000 Fine On IC Markets

IC Markets is in trouble again after the Cyprus Securities and Exchange Commission (CySEC) slammed a €50,000 fine on the firm for violations. CySEC decided on the fine following a meeting by the board on July 1st, 2024.

CySEC Says IC Markets Violated Regulations

According to the regulator, IC Markets violated the Regulated markets and investment services law. The details of the fine showed that IC Markets would pay €30,000 for its failures to provide the best possible outcomes for it was executing customers’ orders.

The watchdog stated that the firm failed to look at certain factors like size and price that could affect the process of execution. The inaction had a negative impact on the customers, who are entitled to receive all the right information from their brokers.

Also, the regulator placed a €10,000 fine on the company for failing to implement proper measures that align with its obligations during order executions for its customers. According to the regulator, the firm failed to give full disclosure to the customers for them to understand the cost implications of their investments.

The regulator imposed a third fine of €10,000, making it €50,000 in total. According to CySEC, the firm did not implement effective arrangements to comply with section 28 of the L.87(I)/2017 Act. The watchdog said the fines were determined by several factors, including the cooperation of the company during the investigation and its financial strength. IC Markets has not responded to the fine, so it’s not clear whether the firm wants to appeal as it did in the previous fine two months ago.

IC Markets Was Fined €200,000 In July For Violations

This will be the second time IC Markets will be fined by CySEC this year. In July, the regulator slammed a hefty €200,000 fine on the firm for breach of average rules.

The fine was placed after allegations that the company used an offshore entity to offer leverage of up to 1000:1. The leverage limit in the EU is 30:1 for CFD and forex brokers.

However, IC Markets argued against the decision as it claimed that CySEC ignored audited evidence but rather concentrated on unbiased claims from a former employee. IC Markets is criticizing the watchdog for not doing a comprehensive investigation on the matter. IC Markets said it will be appealing the decision.

CySEC has strengthened its regulatory activities as the watchdog clamps down on companies violating rules in the financial markets. The regulator has continued to seek the protection of customers and investors who are not familiar with the intricacies of the market.