CySEC Fines Royal Forex Broker for Possible Violations

The Financial Commission / Regulatory Actions / CySEC Fines Royal Forex Broker for Possible Violations

The Cyprus Securities and Exchange Commission has announced a fine for Cypriot Investment Firm (CIF) Royal Forex Ltd. stemming from possible violations of the Investment Services and Activities and Regulated Markets Law of 2017. The regulator indicated that a settlement was reached for €270,000 in regard to the matter.

CySEC indicated that the enforcement action took place as a result of an investigation of the broker’s compliance between January 2018 and December 2019 and after an onsite inspection of the broker’s operations in March 2019. The regulator specified that the broker was found to be in violation of:

1.Article 5(1) of the Law regarding the requirement for CIF authorization.

2.Article 22(1) of the Law as to the authorization conditions of articles 17(2) and 17(5)(a) of the Law, regarding the organizational requirements with which a CIF is required to comply.

3.Article 24 of the Law regarding conflicts of interest.

4.Articles 25(1) and 25(3) of the Law regarding the general principles and information to clients.

It is not clear if the broker will continue to operate under the CySEC regime going forward as it was recently promoting its services across Europe and previously held a football team sponsorship in Italy.

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