Fines pile up: BCM Begin adds €50K to tab after latest CySEC settlement

abdelaziz Fathi

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with BCM Begin Capital Markets CY Ltd, ordering the firm to pay €50,000 for violating the Investment Services and Activities and Regulated Markets Law.

BCM Begin Capital Markets, previously known as OX Capital Markets Limited, runs several trading brands, including CapitalPanda and ProfitLevel. In December 2022, CySEC revealed a separate settlement of €100,000 with the company due to breaches in investment regulations. This settlement followed the broker’s prior payment of €170,000 to the Cypriot regulator, which occurred six months earlier, for violating similar sections of market laws spanning from January 2021 to April 2022.

The CySEC’s previous investigation focused on two specific areas where BCM Begin Capital Markets might have violated regulations. These include breaches related to general principles and information provided to clients, and certain requirements linked to the authorization of Cyprus Investment Firms (CIFs).

The recent prob leading to this settlement was centered on the company’s compliance in offering investment services to clients in Slovenia. The specific areas of CySEC’s concern included the requirement for its CIF authorization under Article 5(1) of the Law, organizational requirements compliance, conflicts of interest management, and compliance to general principles and client information requirements. It also included the company’s assessment of client appropriateness as required by Article 26(3)(a), the drafting and presentation of key information documents as mandated by Articles 5(2) and 8(3) of the Regulation.

To stay on top of compliance, Cypriot brokers must gain insights into the financial situation of the client, including his investment knowledge, experience, and objectives. The genesis of these requirements lies in the Markets in Financial Instruments Directive (MiFID II) regulation.

Following such settlements, CySEC often orders the company to take corrective measures within a set framework. However, the regulator confirmed that BCM Begin Capital Markets 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.

  • Read this next

    Fundamental Analysis

    Global FX Market Summary: EUR, Fed Minutes February 21, 2024

    Hawkish Fed minutes could strengthen USD, dovish BoE hints could boost euro, mixed economic data leaves impact unclear, FOMC minutes release today holds the most weight.

    Digital Assets

    360T launches Crypto NDF offering

    “By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in Distributed Ledger Technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto.”

    Technical Analysis

    FTSE 100 index Technical Analysis Report 20 February, 2024

    The FTSE 100 index is likely to fall to support level 7600.00 after reversing from resistance level 7750.00.

    Retail FX

    Afterprime enhances trade reporting with PrimeXM and TRAction

    “This collaboration has made setting up EMIR and MIFIR reporting for our CySEC entity a breeze, allowing us to maintain our focus on providing best-in-class pricing and top-notch customer service.”

    Market News

    US Market Stocks See a Dip Ahead of FOMC Minutes Announcement

    As the financial world eagerly awaits the release of the Federal Open Market Committee (FOMC) meeting minutes scheduled for today, the S&P 500 index begins trading slightly lower, marking a subtle shift in market sentiment following a prolonged rally.


    Adaptive proves that “the future of finance is in the cloud”

    “While workloads have migrated to the cloud over the past decade, some have doubted whether its latency and fault tolerance can match that of on-premises solutions – our joint testing on Google Cloud, proves that this is the case.”

    Retail FX

    Axi Select offers live trading amid “end of demo account prop firm model”

    “We genuinely empathize with the thousands of talented traders who will now be denied access to their allocated funds, and we encourage anyone using the demo trading registration model to question whether their prop firm partner will be able to continue as an ongoing concern given recent events. Unfortunately, this could be the beginning of the end for the demo account prop firm model.”

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.