The Cyprus Securities and Exchange Commission (CySEC) on Wednesday announced that it reached a €225,000 settlement with Cyprus investment firm FXNET Limited for possible violations of both a markets law and EU regulation.

CySEC said the settlement was made under the relevant piece of legislation, which allows the regulator to reach settlements for any violation or possible violation, act, or omission for which there is reasonable ground to believe that it took place in breach of supervised legislation.

The investigation related to the company’s compliance between 2021 and 2022, following regulatory reviews, and covered several key areas of operational and client management.

According to CySEC, the review assessed FXNET Limited’s adherence to an article concerning authorisation conditions.

The provisions contained within the applicable law relate to organisational requirements, including compliance procedures, product governance, record keeping, and the safeguarding of clients’ funds.

CySEC also examined compliance related to general principles and information provided to clients, as well as the assessment of suitability and appropriateness and the reporting of information to clients.

In addition, the investigation reviewed EU regulation, specifically an article relating to product intervention powers granted to competent authorities.

CySEC said that this also included a directive which governs the restriction on the marketing, distribution, and sale of contracts for difference (CFDs) to retail clients.

The regulator confirmed that the €225,000 settlement amount has already been paid by FXNET Limited.

Finally, the commission clarified that settlement payments are considered revenue to the Treasury of the Republic of Cyprus and do not constitute income of the Commission itself.