The Cyprus Securities and Exchange Commission (CySEC) has imposed a €200,000 settlement on Cyprus Investment Firm (CIF) Colmex Pro Ltd for possible violations of investment services legislation.

The settlement, already paid by the company, stems from a supervisory review covering the period between January 17, 2021, and February 24, 2023.

“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 said.

The regulator’s investigation centred on potential breaches of several provisions of the Investment Services and Activities and Regulated Markets Law of 2017 and Regulation (EU) No. 600/2014.

The possible violations included operating without proper CIF authorisation, failing to meet organisational requirements, inadequately addressing conflicts of interest, and not ensuring information and services provided to clients met regulatory standards.

Specifically, CySEC reviewed the company’s compliance with Articles 5(1), 22(1), 24(1), 25, 26(3)(a), and 28(7) of the 2017 Law, and Article 42 of Regulation (EU) No. 600/2014.

Among other concerns, the probe focused on appropriateness assessments, execution of orders under favourable terms, and adherence to rules restricting the marketing and sale of contracts for difference (CFDs) to retail clients.

“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 said.

The commission also stressed that “the amounts due to settlement agreements are calculated as revenue (income) to the treasury of the Republic and do not constitute income of CySEC.”