The company was fined for non-compliance of prevention and detection of market abuse.
There were suspicions that 'certain transactions could constitute insider dealing.'
“The Board of the Cyprus Securities and Exchange Commission (the ‘CySEC’) wishes to inform the public that, at its meeting held on the 14th March 2022, decided to impose an administrative fine of €10.000 to CIF Capital Com SV Investments Ltd (the ‘Company’) for non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, after informing CySEC with undue delay, through two suspicious transactions and orders reports, for its reasonable suspicions that certain transactions could constitute insider dealing.”
Any person professionally arranging or executing transactions shall establish and maintain effective arrangements, systems and procedures to detect and report suspicious orders and transactions.
“Where such a person has a reasonable suspicion that an order or transaction in any financial instrument, whether placed or executed on or outside a trading venue, could constitute insider dealing, market manipulation or attempted insider dealing or market manipulation, the person shall notify the competent authority as referred to in paragraph 3 without delay.”
In January 2022, Atlantic Securities Ltd. was fined by CySEC in violation of Article 16(2). Atlantic Securities were only fined 3,000 euros, which is a significantly lower amount than CIF Capital Com SV Investments Ltd.
Capital.com Response
We have reached out to capital.com regarding the fine and received the following response:
We have today received notification of a fine from the Cyprus Securities and Exchange Commission (CySec). The fine relates to the delayed regulatory reporting of a market abuse case involving two clients on our platform. The finding is from over a year ago.
We are currently engaging with CySec to review the notification. Capital.com is deeply committed to ensuring a strong culture of regulatory compliance. We always aim to report all regulatory incidents as soon as they occur.
“This is the first time Capital.com has received a notification of a fine from CySec. To ensure that all future incidents are reported in a timely fashion, we have made additional improvements to our processes.”
