CySEC reaches €160,000 settlement with Indication Investments

Maria Nikolova

The Cypriot regulator reached a settlement agreement with Indication Investments Ltd, operator of LIBERTEX, for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017.

The Cyprus Securities and Exchange Commission (CySEC) today announces that it has reached a settlement agreement with the Cyprus Investment Firm (CIF) Indication Investments Ltd for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 – L.87(I)/2017 («the Law»).

Let’s note that Indication Investments is licensed by CySEC to operate two domains – and Only the latter is currently operational.

The settlement has been reached following an investigation, which took place at Indication Investments’ premises in November 2018. The investigation related to the following regulatory requirements supervised by CySEC:

  • Articles 28(1)(a), 28(7) and 28(8) of the Law, regarding the CIF’s obligation to execute orders on terms most favorable to the client.
  • Articles 22(1) regarding the conditions for CIF authorisation. Explicitly, articles 17(3)(a) and 17(4) of the Law, regarding the CIF’s obligation towards its organisational requirements.
  • Article 40 of Regulation (EU) No 600/2014, regarding ESMA temporary intervention powers. In particular, ESMA’s Decision (EU) 2018/796, for the temporary restriction on contracts for differences in the Union in respect of retail clients.

ESMA’s Decision (EU) 2018/796 imposed restrictions on the maximum leverage (up to 1:30) for specified products when these are offered to retail clients. Also, Article 2 of the ESMA’s Decision (EU) 2018/796 required the implementation of margin close-out protection for retail clients that trade CFDs.

The settlement reached with the company, regarding the possible violations of its regulatory obligations, amounts to €160,000. Indication Investments settled the amount of €160,000, CySEC says.

All amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute CySEC income.

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