The Board of Directors of the Cyprus Securities and Exchange Commission (CySEC) has decided to impose a total fine of EUR 1 million on Itrade Global (CY) Ltd, a Cypriot investment company, for various violations of the Investment Services and Activities and Regulated Markets Act 2017.

Specifically, under Article 22 of the Act, Itrade Global was fined €240,000 for failing to establish adequate policies and procedures to ensure its lawful operations, for failing to identify and assess customer target markets and identify risks during the product approval process, and for failing to keep a record of telephone conversations, all services provided and trading activities.

In accordance with Article 25(1) of the Act, Itrade Global was fined €130,000 for not acting honestly, fairly and professionally in the best interests of its clients when serving them.

In accordance with Article 25(3) of the Act, Itrade Global was fined €110,000 for failing to ensure that all information provided to customers or potential customers through its website, marketing communications and the call centres of its agents in Spain was fair, clear and not misleading.

In accordance with Article 26 of the Act, Itrade Global was fined €80,000 for failing to ensure that a trusted agent acting on its behalf in Spain had the necessary knowledge and competence to perform its work obligations. At the same time, the company did not ask customers or potential customers to provide all the necessary information, and was fined another 80,000 euros.

In accordance with Article 30 of the Act, Itrade Global was fined €240,000 for failing to monitor the activities of its affiliated agents acting on its behalf in Spain and for failing to ensure compliance with the law when acting through its affiliated agents.

CySEC has an important position in the financial industry, with many financial institutions and investors seeking a high level of regulatory environment choosing to conduct business and invest under its supervision. According to CySEC's annual Summary for 2022, the number of entities regulated by the regulator reached 837 by the end of 2022, an increase of 3.9% compared to 2021.