The Cyprus Securities and Exchange Commission (CySEC) recently concluded a €150,000 settlement with Naga Markets Europe Ltd., a Cyprus-licensed company that operates under the NAGA Group in Germany.
This settlement comes as a result of a thorough review and investigation carried out by CySEC, covering the period from January 2021 to April 2022.
The investigation aimed to assess NAGA’s compliance with key provisions of the Investment Services and Activities and Regulated Markets Law.
CySEC identified potential breaches in various areas, including NAGA’s authorization conditions, organizational requirements, client information disclosure, suitability and appropriateness assessments, best execution of client orders, and adherence to product intervention rules.
While specific details regarding these violations remain undisclosed, the imposed fine reflects CySEC’s heightened vigilance in monitoring and enforcing regulatory standards within the Cyprus financial sector.
In a recent development, NAGA announced its plans to merge with Capex.com, with expectations of achieving a combined revenue of $250 million upon completion, anticipated before the first half of 2024.
Furthermore, NAGA’s official financial results for the first half of 2023 surpassed preliminary figures, with the company reporting earnings of €25.2 million, a substantial increase of nearly €5 million compared to figures disclosed in July.
Naga Markets, which obtained its CIF license from CySEC in 2013, has promptly settled the €150,000 fine, directing the amount to the Cypriot Treasury.
Notably, it joins a growing list of Cyprus-regulated brokers that have faced financial sanctions over the past year.
Recently, Cyprus’ financial regulatory body imposed a €50,000 fine on BCM Begin Capital Markets for potential breaches of local regulatory standards, with the company promptly settling the penalty.
Additionally, Titanedge Securities Ltd, operating the CFD brokerage brands TradeEU.com and Titan Edge, faced a €90,000 penalty for likely compliance issues spanning from October 2022 to July 2023.
In another significant development, the Cyprus financial oversight authority took action against TriumphFX, a regulated retail broker, suspending shareholder rights due to management concerns, particularly focusing on the sole indirect shareholder, Chong Chun Hseung.
This move followed prior warnings issued by Asian regulatory bodies in preceding years.
CySEC emphasized that settlement agreements are tailored to the specific circumstances of each case. Firms are expected to take corrective measures and reinforce internal procedures to ensure comprehensive compliance with regulatory standards in the future.
These developments underscore CySEC’s commitment to maintaining the integrity and transparency of the Cyprus financial sector.