The Cyprus Securities and Exchange Commission (CySEC) today announced a €200,000 settlement with Cyprus investment firm Colmex Pro.

The settlement concerns possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’) and the Regulation (EU) Νο. 600/2014.

More specifically, the investigation for which the settlement was reached involved a supervisory review conducted at Colmex Pro, which, during the period from 17.1.2021 to 24.2.2023, may have acted in violation of the:

1. Article 5(1) of the Law, regarding the requirement for CIF authorization.
2. Article 22(1) of the Law, as to the authorisation condition laid down in article 17(2) of the Law, regarding the organizational requirements with which a CIF is required to comply.
3. Article 24(1) of the Law, regarding the conflicts of interest.
4. Article 25, sections (1), (2)(b), (3)(a) and (4)(a)(ii) of the Law, regarding the general principles and information addressed to clients.
5. Article 26(3)(a) of the Law, regarding the assessment of appropriateness.
6. Article 28(7) of the Law, regarding the obligation to execute orders on terms most favourable to the client.
7. Article 42 of the Regulation (EU) Νο. 600/2014 regarding the product intervention by competent authorities, particularly paragraph 5 of the CySEC’s Directive DI87-09 for the restriction on the marketing, distribution, and sale of contracts for difference (CFDs) to retail clients.

The settlement reached with the Company for the possible violations is for the amount of €200,000, which the Company has already paid.

The regulator notes that the amounts due to settlement agreements are calculated as revenue (income) to the Treasury of the Republic and do not constitute income of CySEC.