CySEC Slaps €50,000 Fine on IC Markets for Regulatory Breaches

On July 1, 2024, the Cyprus Securities and Exchange Commission (CySEC) imposed a €50,000 fine on IC Markets (EU) Ltd for multiple violations of the Investment Services and Activities and Regulated Markets Law. The fine is the result of several breaches related to client order execution and transparency.

IC Markets was penalized €30,000 for failing to secure the best possible outcomes for its clients during order execution. CySEC found that the company did not adequately account for crucial factors such as price and order size, potentially impacting clients’ investment results.

In addition, the company faces a €10,000 fine for inadequate measures to comply with client order execution obligations. The regulator highlighted a lack of effective procedures to meet these regulatory requirements.

CySEC Slaps €50,000 Fine on IC Markets for Regulatory Breaches

Another €10,000 fine was imposed for the company’s failure to provide clear and comprehensive information regarding costs and charges. This shortcoming prevented clients from fully understanding the cost implications on their investments.

IC Markets (EU) Ltd has vehemently contested the CySEC’s decision. The company argues that the fines are unjustified and do not reflect its operational standards. “We firmly disagree with CySEC’s conclusions, particularly the assertion that we did not take sufficient steps to achieve the best possible execution results for our clients,” the company stated. They emphasize that they have maintained robust internal systems and conducted comprehensive ex-ante checks on pricing.

This latest fine follows a previous €200,000 penalty imposed by CySEC for breaching leverage rules. IC Markets (EU) Ltd was found to have offered leverage up to 1000:1 through an offshore entity, in violation of EU regulations that limit leverage to 30:1 for FX and CFD brokers. The company disputes this earlier fine as well, claiming bias and a lack of impartiality in the regulatory process. They plan to appeal both decisions, criticizing CySEC’s approach as lacking transparency.

Lastly, take a look at the Best Forex Brokers.