Colmex Pro Pays €200,000 Settlement to CySEC Over Possible Investment Services Violations

The Cyprus Securities and Exchange Commission (CySEC) has reached a €200,000 settlement with Cyprus Investment Firm (CIF) Colmex Pro Ltd in connection with potential breaches of investment services legislation. The company has already paid the settlement amount, which follows a supervisory review covering activities from January 17, 2021, to February 24, 2023.

According to CySEC, the settlement was reached under the provisions of article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009. In a statement, the regulator clarified: “CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation.”

The commission’s investigation focused on potential infringements of several key provisions under the Investment Services and Activities and Regulated Markets Law of 2017, as well as Article 42 of Regulation (EU) No. 600/2014. The possible violations involved a range of compliance failings, including operating without appropriate CIF authorisation, deficiencies in organisational structures, insufficient conflict-of-interest procedures, and the failure to ensure that services and information provided to clients adhered to regulatory requirements.

CySEC specifically examined Colmex Pro’s adherence to Articles 5(1), 22(1), 24(1), 25, 26(3)(a), and 28(7) of the 2017 Law. It also reviewed whether the company complied with Article 42 of Regulation (EU) No. 600/2014. Areas of concern included the firm’s processes for assessing the appropriateness of investment products for clients, executing orders on terms most favourable to clients, and following rules that govern the marketing and sale of contracts for difference (CFDs) to retail investors.

“A settlement has been reached with the CIF Colmex Pro Ltd (‘the Company’) for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’) and the Regulation (EU) Νο. 600/2014,” CySEC confirmed in its official statement.

The commission also underscored that any funds resulting from settlement agreements go directly to the treasury of the Republic of Cyprus. “The amounts due to settlement agreements are calculated as revenue (income) to the treasury of the Republic and do not constitute income of CySEC,” the statement concluded.

By fLEXI tEAM