Cypriot regulator fines stockbroker Atlantic Securities for supervision lapses

abdelaziz Fathi

The Cyprus Securities and Exchange Commission (CySEC) announced that it has fined stocks broker Atlantic Securities Ltd €3,000 due to shortcomings in the company’s internal controls.

Established in Limassol in 2001, Atlantic Securities is a member of the Cyprus stock Exchange since 2001 and member of Athens Exchanges since 2006.

Accurate details of the settlement have not yet been made public, but the violations were related to the general principals of the article 16(2) of Regulation (EU) 596/2014 on market abuse. The enforcement action was a result of the compliance onsite investigation started by the regulator, which found that the broker did not establish or maintain effective arrangements for detecting suspicious orders and transactions.

Additionally, Atlantic Securities’ systems didn’t take into account the non-exhaustive list of market manipulation indicators contained in the Cypriot law.

In deciding the disciplinary action, the authority considered it needed to send a clear deterrent message about the CIF’s lapses and highlight weaknesses in supervision systems covering the staff’s handling of trading accounts.

After several months of pause, the Cypriot regulator is once again flexing its muscles and actively finding compliance irregularities. Earlier in September, the Cyprus watchdog had taken away the license of London Capital Group (Cyprus) as the company materially contravened its licensing conditions. The CySEC confirmed it will maintain supervision over the Cypriot arm of London Capital Group ‎‎(LCG) until it has taken care of its responsibilities under the expired license.

LCG’s CIF approval was revoked because the company hadn’t appointed at least “two persons who meet the requirements” to operate its brokerage business in Cyprus. Based on the information at the disposal of the CySEC and in order to protect the interests of the investors from being further compromised, the license of LCG Cyprus has been wholly withdrawn.

Following such settlements, CySEC often orders the company to take corrective measures within a set framework. However, the regulator confirmed that Atlantic Securities already paid the settlement fees and since such agreements are usually announced within six months of an inspection, the majority of issues should have already been resolved. Furthermore, it noted that all amounts payable from settlement agreements are considered revenue of the Treasury Department and do not go to CySEC’s pocket.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<