Cyprus financial regulator CySEC has announced that a settlement has been reached with the licensed CIF L.F. Investment Ltd, which operates the Purple Trading brokerage brand (at website purple-trading.com) for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’) and the Regulation (EU) Νο. 600/2014 (‘the Regulation’).
CySEC noted that under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, the regulator 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.
More specifically, the investigation for which the settlement was reached involved assessing the Company’s compliance, for the period July 2021 until 1.10.2023, with:
1. Article 22(1) of the Law, as to the authorisation conditions laid down in articles 17(2) and 17(3)(c) of the Law, regarding the organisational requirements with which CIFs must comply.
2. Article 24(1) of the Law, regarding the conflicts of interest.
3. Article 25, sections (1) and (4)(a) of the Law, regarding the general principles and information addressed to clients.
4. Article 30(2)(b) of the Law, regarding the obligations of CIFs when appointing tied agents.
5. Article 42 of the Regulation regarding the product intervention by competent authorities, particularly paragraph 5 of the CySEC’s Directive DI87-09 for the restriction on the marketing, distribution, and sale of contracts for difference (CFDs) to retail clients.
The settlement reached with the Company for the possible violations is for the amount of €150,000, which the Company has already paid.
It is noted 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.
