Alvexo settles with CySEC €100,000 for CFD trading violations

Rick Steves

The company settled with CySEC for the amount of €100.000, which it had already paid in full.

VPR Safe Financial Group has settled with the Cyprus Securities and Exchange Commission after an investigation for possible violations of the Investment Services and Activities and Regulated Markets Law.

The retail FX and CFD broker which operates Alvexo in the European Union was under investigation for failures to comply with restrictions on the marketing, distribution, and sale of contracts for difference (CFDs) to retail clients.

The company settled with CySEC for the amount of €100.000, which it had already paid in full.

Alvexo boasts nearly one million accounts registered with them. The broker has offices in Cyprus and France.

CySEC has imposed a total of €3.19m in administrative fines in 2020, with €2.02m being linked to CIFs.

It also suspended the operating license of 8 CIFs, revoked the operating license of 3 CIFs, and notified more than 93 regulated entities to take certain measures, within a specific timeframe after identifying weaknesses and/or omissions as part of its oversight checks.

The regulatory authority is committed to boosting its supervisory role in 2021. CySEC highlighted the reinforcement of investor protection as its highest priority.

Demetra Kalogerou, Chairwoman of the Cyprus Securities and Exchange Commission, stated that a total of 88 entities were approved for a CySEC license, 69 of which are active in collective investments, 14 in the provision of investment services, and 5 in the provision of administrative services.

CySEC has now 779 entities under its supervision, which is up by 4.42% compared to 2019, during which it supervised 746 entities.

In February 2020, CySEC settled with the operator of TopForex after an investigation into Goldenburg Group Limited’s potential compliance deficiencies regarding conflicts of interest, general principles and information to clients, the assessment of appropriateness to clients, the obligations of investment firms when appointing tied agents, and the conditions for the marketing, distribution or sale of CFDs to retail clients.

The settlement cost the firm €270,000. Goldenburg operates several trading brands, including topforex.com, fxglobal.com, tradecentrum.com, and toptrader.eu.

 

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