The Cyprus Securities and Exchange Commission (CySEC) has continued its crackdown on financial violators in the countries. This time, the regulator is taking action against two companies – BrokerCreditService (Cyprus) Limited and Ayers Alliance Financial Group – for violating the regulator’s mandatory staffing requirements.
BrokerCreditService Is Fined €10,000 For The Violation
According to the watchdog, Ayers Alliance violated the staffing rules for its risk management department. As a result, CySEC has blocked the firm from using personnel without the expertise and skills needed to carry out the responsibilities of the Head of the Risk Management Department.
For BrokerCreditService (BCS), the regulator is taking legal action for non-compliance with Cyprus’ market abuse laws. The firm will also pay an administrative fine of €10,000 for the offense.
CySEC accused BCS of not establishing and maintaining arrangements and systems for detecting suspicious transactions. The company wasn’t monitoring the circumstances of change in the price of the financial instruments. As a result, it could have led to reasonable suspicion of insider dealing in transactions on the financial instrument.
Both firms are financial services providers that offer trading and investment services to their clients. Ayers Alliance, formerly known as Harbork Ltd, provides structural investment products and asset management services
On the other hand, BCS has CySEC’s license to offer electronic trading access via its trading system for transactions in equities and derivatives on LSE, Russia’s MICEX, and other leading trading exchanges.
CySEC Intensifies Regulatory Efforts
The Cyprus regulator has been very active in the market lately as it intensifies efforts to protect market participants. The watchdog has particularly been active when taking action against companies that fail to comply with the market rules. A few days ago, the regulator withdrew the licenses of three financial services providers, although they decided to voluntarily renounce their licenses.
Additionally, CySEC has added more names to its list of blacklisted sites, especially those accused of carrying out unregulated and fraudulent financial services. Most of the affected firms offering these illegal services are offshore companies, according to the Cyprus regulator. CySEC has also laid out rules for companies that want to register and offer financial services in the country.