CySEC fines ICFD Ltd for compliance failings

Maria Nikolova

A fine of €138,000 has been imposed on the company for multiple compliance failings.

The Cyprus Securities and Exchange Commission (“CySEC”) has today imposed a financial penalty on ICFD Ltd (the “Company”), an investment firm that provides online retail trading products in forex. A fine of €138,000 has been imposed on the Company for multiple compliance failings.

These failings that occurred in 2016 breached the policies and procedures CySEC enforces on Cyprus Investment Firms (“CIFs”) in order to guarantee full investor protection.

The identified failings included a non-compliance with:

  •  Section 6(8) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended (‘the Law’),
  •  Section 28(1) of the Law, as it failed to comply, at all times, with the authorization and operating conditions laid down in sections 18(2)(a) and 18(2)(d) of the Law, as specified in paragraphs 14 and 16 of Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (“Directive 1”),
  •  Sections 36(1), 36(1)(a), 36(1)(b) and 36(1)(d) of the Law and paragraphs 4, 6, and 16 of Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the Professional Competence of Investment Firms and the Natural Persons Employed by them (“Directive 2”).

In non-compliance with these regulatory obligations, the Company’s specific failings concerned:

  •  The Company provided investment services it was not licensed to offer by CySEC, including the investment advice itself;
  •  The Company did not take reasonable steps to avoid operational risk deteriorating when running its business and/or when outsourcing activities to third party service providers;
  •  The Company did not act fairly, honestly and professionally to serve the best interests of its clients at all times;
  •  In providing information addressed to clients and potential clients from employees of its call centres, the disclosure on the Company’s website, and the contents of the Company’s advertising was not clear, accurate and not misleading. These materials consistently failed to alert clients and potential clients to the risks of and warnings in investing;
  •  In providing information addressed to clients and potential clients, the Company failed to ensure it sufficiently communicated the nature and risks of the investment service(s) offered;
  •  The Company was therefore unable to assess whether the proposed investment service or financial instrument provided to them by the Company was suitable for these clients;
  •  The Company did not source or collect the necessary information from its clients and potential clients regarding their relevant knowledge and experience to trade in the particular financial products it was offering;
  • Further, the Company encouraged clients and potential clients to not provide the information required for the purposes of Article 36(1)(d) of the Law, in demonstrable violation of the explicit legislation.

In addition to the financial sanctions imposed on the Company, CySEC has also enforced a number of corrective actions, in respect to the above deficiencies, to ensure full compliance with the Investment Services and Activities and Regulated Markets Act of 2017 (Law 87(I)/2017), which entered into force on 3 January 2018 and harmonises the Cyprus legal framework with Directive 2014/65/EU on Markets in Financial Instruments (MiFID II).

Demetra Kalogerou, Chair of CySEC, said:

“Following CySEC’s investigation, the Company was found to be in violation of the laws we have in place and enforce to protect retail investors trading in speculative financial products, such as forex. The Company in question showed, among others, deficiencies in properly disclosing the risks to existing and prospective investors, and in some cases, even served to promote and actively market certain products at the expense of providing clear and non-misleading information. Having enforced a number of corrective measures in addition to those financial penalties imposed on the Company, CySEC will continue to keep the Company under close supervision and it will remain subject to follow-up inspections.”

Read this next

Digital Assets

SEC seeks $5.3 billion fine for Terraform and co-founder Do Kwon

Federal regulators are pursuing a fine of $5.3 billion against Terraform Labs and its co-founder Do Kwon for defrauding investors, following a recent verdict that found them liable for a multi-billion-dollar fraud.

Digital Assets

El Salvador’s Bitcoin wallet hacked by CiberInteligenciaSV

El Salvador’s official Bitcoin wallet, Chivo, has faced another security setback as the hacker group CiberInteligenciaSV released parts of the wallet’s source code on the black hat hacking forum BreachForums.


BlockDAG’s $19.8M Presale & Moon Keynote Teaser Place It Above KANG, SOL, & ARB as the Top Crypto Investment in 2024

Uncover the success behind BlockDAG’s $19.8M presale and learn what’s making it a more compelling investment than KangaMoon, Solana, and Arbitrum.


Revolut taps TikTok exec to drive £300 million ad revenue

Fintech giant Revolut is exploring new revenue streams by planning to share customer data with advertising partners.


Zircuit Staking Soars Past $2B TVL In Only 2 Months

Zircuit, a ZK rollup with parallelized circuits and AI-enabled security, today announced that its staking program has soared past $2B in TVL in only 2 months. 

Retail FX

PrimeXBT joins Financial Commission’s membership roster

The Financial Commission, an independent external dispute resolution (EDR) body, today announced the addition of cryptocurrency trading firm PrimeXBT as its latest member effective March 6, 2024.

Digital Assets

Ripple wants to reduce SEC’s $2 billion penalty to $10 million

Ripple Labs has responded to the U.S. Securities and Exchange Commission’s (SEC) recent demand for $2 billion in penalties, arguing that the amount should be substantially reduced to $10 million. The legal stance was disclosed in a court document filed late Monday.


Analysts Go Bullish On BlockDAG After Its Surge to $0.005 And Unique Developer Platform That Goes Beyond Ethereum & BONK

Discover how BlockDAG’s unique low-code and no-code platforms offer more adaptability than Ethereum’s bull run and BONK’s fluctuating prices.

Tech and Fundamental, Technical Analysis

WTI crude oil Technical Analysis Report 23 April, 2024

WTI crude oil can be expected to rise further toward the next major resistance level 86.00, which has been reversing the price from October.