CySEC slaps Cyprus firm with €360,000 fine

According to CySEC, MCA Intelifunds has been fined for several violations. The first fine of €80,000 was imposed for “failure to comply at all times with the authorisation condition of the Law by not establishing adequate policies and procedures sufficient to ensure its compliance with its obligations”.

A fine of €150,000 was levied after it was found that the CIF “did not act honestly, fairly and professionally when providing investment services to clients, in accordance with their best interests”.

Another €25,000 fine was imposed due to the CIF’s “failure to assess the compatibility of the financial instruments it offered or recommended with the needs of the clients to whom it provided investment services”.

Also, CySEC said that this fine was due to the company “not taking into account the identified target market of end-clients, and not ensuring that those financial instruments being offered or recommended were in the interest of the client”.

Additionally, a €25,000 fine was issued “as the CIF, which manufactures financial instruments (CFDs) for sale to clients, did not take reasonable steps to ensure that the financial instruments were distributed to the identified target market”.

Moreover, a fine of €60,000 was imposed “as the CIF did not require clients or potential clients to provide all necessary information regarding that person’s knowledge and experience in the investment field, relevant to the specific type of product offered, so as to enable itself to assess whether the product envisaged was appropriate for the client”.

Finally, a €20,000 fine was levied “for the CIF’s failure to properly warn the client or the potential client, on the basis of the information received, that the product or service was not appropriate” for them.