Cyprus-based investment firm Colmex Pro Ltd has reached a €200,000 settlement with the Cyprus Securities and Exchange Commission (CySEC) over possible regulatory violations spanning a two-year period, the regulator announced today.

The settlement addresses potential breaches of the Investment Services and Activities and Regulated Markets Law of 2017 and European Union Regulation No. 600/2014, following a supervisory review conducted by CySEC.

According to the regulatory announcement, the investigation covered Colmex Pro's activities between January 17, 2021, and February 24, 2023. The regulator identified potential violations across multiple areas, including CIF authorization requirements, organizational standards, conflict of interest management, and client information disclosures.

CySEC also flagged possible breaches related to appropriateness assessments for clients, best execution obligations, and product intervention requirements specific to contracts for difference (CFDs) marketed to retail clients.

Nicos Vassilou, CEO of Colmex Pro, responded to the settlement in a statement, emphasizing that the agreement "does not constitute an admission of any wrongdoing" and relates to "a historical compliance review" covering a past period.

"We have already implemented all required enhancements to our compliance framework and remain dedicated to maintaining the highest standards of conduct and client protection," Vassilou said.

The settlement amount has been paid in full, with CySEC noting that all settlement funds are directed to the Treasury of the Republic of Cyprus rather than becoming income for the regulator itself.

This action comes amid continued regulatory scrutiny of Cyprus-based investment firms, particularly those offering complex financial products like CFDs to retail investors. CySEC has been actively monitoring compliance with its product intervention measures, which aim to protect retail investors from excessive risk exposure.

The settlement reflects CySEC's ongoing efforts to enforce regulatory standards in Cyprus's financial services sector, which has grown significantly as a regional hub for online trading platforms and investment services.

Source: Finance Magnates