Cyprus financial regulator CySEC has announced that a settlement has been reached with CIF licensed entity Robomarkets Ltd, for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’) and the Regulation (EU) Νο. 600/2014 (‘the Regulation’).

More specifically, the review for which the settlement was reached involved assessing the Company’s compliance, for the period from June 2023 until 28 June 2024, with:

1. 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.

2. Article 25(1) of the Law, regarding the general principles and information addressed to clients.

3. Article 26(3), sections (a) and (b) of the Law, regarding the assessment of appropriateness.

4. Article 42 of the Regulation 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 €100,000, which the Company has already paid.

We would note that soon after the review period that CySEC used for its compliance assessment of the company, RoboMarkets announced (in late 2024) that it was making certain changes to its European business model. Specifically, the company’s Cyprus based, CySEC-licensed arm transitioned to an institutional broker, no longer serving retail clients. The group’s Germany based, BaFin-regulated entity, RoboMarkets Deutschland GmbH, became the center for serving European retail clients, concentrating exclusively on stocks, bonds, and ETFs.