The Cyprus Securities and Exchange Commission (CySEC) has announced regulatory action against members of the board of Itrade Global (Cy) Ltd, following findings of non-compliance with the Investment Services and Activities and Regulated Markets Law of 2017.

The financial regulator revealed that it had previously imposed an administrative fine on the company for breaches of the law, as set out in a decision dated April 3, 2023.

Subsequently, CySEC examined the conduct of the company’s board of directors during the relevant period and concluded that several directors failed to fulfil critical obligations under the law.

The commission determined that five members of the board at the material time acted in violation of sections 10(1)(a) and 10(1)(d) of the law.

These provisions relate to governance standards and the oversight responsibilities of the board to ensure prudent management and client protection.

Those identified were Lee Ron More, who has served as Executive Director, President and Shareholder since April 8, 2016; Elif Kundakci, who was Executive Director from May 31, 2019, to March 31, 2021; and Yiannakis Christofi, who held the role of Executive Director from April 8, 2016, to July 26, 2021.

Also named were Charis Charalambides, who was an Independent Non-Executive Director from July 20, 2016, to November 22, 2023, and Tatiana Kyriakidou, who served in the same capacity from July 20, 2016, to September 11, 2023.

CySEC stated that the board “did not oversee the implementation of arrangements that ensure the effective and prudent management of the company in a way that promoted the integrity of the market and the interest of its clients,” as required by section 10(1)(a).

Furthermore, the board “did not monitor and periodically assess the effectiveness of its governance arrangements and the adequacy of its policies relating to the provision of services to clients and it did not take appropriate steps to address any deficiencies,” in breach of section 10(1)(d).

As a result of these violations, CySEC has decided to impose an administrative fine of €50,000 on Lee Ron More and has banned him from exercising management functions in Cyprus Investment Firms (CIFs) for a period of three years.

No administrative fines or other measures were imposed on Elif Kundakci, Yiannakis Christofi, Charis Charalambides, or Tatiana Kyriakidou.

CySEC cited “various factors relating to their capacity in the company” as the reason for not taking further action against them.