Finance Feeds logo

Royal Forex and ROInvesting renounce CySEC license after €120,000 fine

abdelaziz Fathi

The Cyprus Securities and Exchange Commission (CySEC) has slapped Royal Forex Ltd with a regulatory fine due to shortcomings in its organizational obligations and other infringements.

The administrative fine was imposed after CySEC concluded its investigation into violations made by Royal Forex, which operates through www.royalforex.com and www.ROInvesting.com. The company agreed to pay €120,000 to resolve charges that it violated the Cypriot investment laws during the period between July 2020 and October 2021.

According to a CySEC announcement, the ruling is related to the transparency requirements in relation to information provided to clients. The brand was also flagged for non-compliance with authorization conditions stated in many articles, which mainly concern the appropriateness of their products offered to certain client segments.

The deficiencies, cited in the regulator’s order against Royal Forex, included weaknesses in the company’s compliance with the following articles:

  1. Article 22 (1) of the Law, as to the authorisation condition laid down in article 17(6) of the Law, regarding the organisational requirements with which a CIF is required to comply.
  2. 2Articles 25(1) and 25(3) of the Law regarding the general principles and information addressed to clients.

Additionally, the Cysec’s website shows that Royal Forex is currently under examination for voluntary renunciation of its authorisation. Although the regulator didn’t clearly state why the company decided to say goodbye to its CIF authorization, the last few years saw many regulated brokers opt to voluntary surrender their license, and not as a result of any regulatory issues.

Royal Forex has a considerable global presence and offers CFDs in several markets including forex, cryptocurrencies, indices, stocks and commodities.

After several months of pause, the Cypriot regulator is once again flexing its muscles and actively finding compliance irregularities. The news about the settlement with Royal Forex comes a few weeks after it hit Magnum FX Ltd (trading as ET Finance) and F1Markets Ltd (trading as Investous, StrattonMarkets and Europrime), with a €150,000 fine each.

Subscribe

Read this next

Digital Assets

Masa Announces Comprehensive AI Developer Ecosystem with 13 Dynamic Partners Focused on Leveraging Decentralized Data and Large Language Models

In a groundbreaking development, Masa, the global leader in decentralized AI and Large Language Models (LLMs), proudly announces the launch of its AI Developer Ecosystem, partnering with 13 visionary projects.

digital face
Financewire

Kinesis Mint becomes the official partner for the House of Mandela

Kinesis Mint, the certified independent precious metals mint and refinery of Kinesis, the monetary system backed by 1:1 allocated gold and silver, has been appointed the exclusive coin producer for the House of Mandela.

Photo of Nelson Mandela
Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Image of a woman with the citate
Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Symbol of Ramp network
Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Mayne Ayliffe joins INFINOX
Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

<
✖