CySEC Reaches €35,000 Settlement with Squared Financial

The Cyprus Securities and Exchange Commission (CySEC) has confirmed that a settlement has been reached with CIF license holder Squared Financial (CY) Ltd, the company behind the SquaredFinancial Retail FX and CFDs brokerage brand, over a potential violation of Regulation (EU) No. 600/2014.

The regulatory investigation focused on the firm’s compliance during the period from 26 October 2022 to 16 September 2024 with Article 42 of Regulation (EU) No. 600/2014. This article pertains to the intervention powers of competent authorities in financial products, with particular emphasis on retail trading of contracts for differences (CFDs). CySEC’s scrutiny was also by paragraph 5 of its Directive DI87-09, which restricts the marketing, distribution, and sale of CFDs to retail clients.

CySEC Reaches €35,000 Settlement with Squared Financial

Under the terms of the settlement, Squared Financial is ready to pay a fine of €35,000, which is available in full. The resolution marks the conclusion of CySEC’s review regarding the potential breach and underscores the regulator’s commitment to enforcing EU financial regulations and ensuring the protection of retail investors.

SquaredFinancial operates predominantly from Cyprus through its CySEC-regulated subsidiary, Squared Financial (CY) Ltd, accessible via the website squaredfinancial.com. In addition to its Cyprus operations, the firm maintains an offshore branch, Squared Financial (Seychelles) Ltd, operating at sqfin.com. Squared Financial provides trading services in forex and CFDs to a global client base and emphasizes regulatory compliance across its European and international operations.

This settlement highlights the ongoing regulatory oversight within the EU financial markets, particularly concerning the sale and distribution of leveraged products to retail clients. Market participants and retail investors have to remain informed of the regulatory framework and CySEC directives to ensure compliance and safeguard trading activities.

The €35,000 settlement serves both as a corrective measure for Squared Financial and a reminder of the importance of adhering to EU regulations, reinforcing CySEC’s role in maintaining market integrity and investor protection in Cyprus and the wider EU financial sector.

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