Cyprus financial regulator CySEC has announced that it has imposed a fine of €100,000 to CIF license holder Wonderinterest Trading Ltd, for violations of The Investment Services and Activities and Regulated Markets Law of 2017 committed during the period 2022-2024.

Wonderinterest Trading Ltd operates several CFD brokerage brands targeting markets mainly in eastern Europe (such as Slovakia, Czechia, and Hungary), including Investago and Zetano.

Fine breakdown

Particularly CySEC imposed to the Company:

A. A fine of €50.000 for violation of section 22(1) of the Law, as the Company did not comply at all times with the following authorisation conditions:

i. Section 17(2) of the Law, as specified further in Article 22(2) of Delegated Regulation (EU) 2017/565, as the Company did not establish adequate policies and procedures sufficient to ensure its compliance with its obligations under the Law.

ii. Section 17(3)(c) of the Law, as specified further in paragraph 11(9) of the Directive for the Safeguarding of Client Assets, Product Governance Obligations and Inducement, as the Company did not specify an identified target market of end clients for each financial instrument and did not ensure that all relevant risks to such identified target market were assessed.

B. A fine of €30.000 for violation of section 25(1) of the Law, as the Company did not act honestly, fairly and professionally when providing investment services to clients, in accordance with the best interests of its clients.

C. A fine of €20.000 for violation of section 25(3)(a) of the Law, as specified in Articles 44(1), 44(2)(b) and 44(2)(e) of Delegated Regulation (EU) 2017/565, as the Company did not ensure that all information, including marketing communications, provided to clients or potential clients, was fair, clear and not misleading.

Fine amount reasons

In determining the amount of the total administrative fine, CySEC said that it took into account, among others and without limitation, the following factors:

1. The importance attached to ensuring that the persons subject to the supervision of CySEC fully comply with the provisions of the Law and Delegated Regulation (EU) 2017/565.

2. The importance attached to:

2.1. the implementation of appropriate policies and procedures by a CIF in the context of its operation.

2.2. ensuring the protection of the investment public and the clients of the CIFs, which is achieved if the information provided by the CIFs allows them to make informed decisions.

3. The seriousness attributed to the obligation of CIFs to act fairly, with honesty and professionalism, as a measure to strengthen investor confidence in the market.

4. The need for CIFs to ensure that financial instruments are distributed to the identified target market of end clients in accordance with the needs of the target market and after an assessment of the risks associated with it, which acts in the interests of its clients.

5. That the Company, at the material time, did not ensure the protection of the interests of its clients.