Cyprus Securities and Exchange Commission (CySEC) has announced very serious financial penalties on high level executives of Falcon Brokers and banned important figures of the firm from doing business in financial sector for several years.
CySEC has been investigating Falcon Brokers for suspected misconduct for last one and half years and the financial penalties came as the result of this investigation. The firm’s CySEC license got suspended by the watch dog on 24 Sept 2015. For those who don’t have background about Falcon Brokers, the firm used to provide online forex trading products.
Four individuals who hold senior management positions at the firm are fined by a sum of €195.00 and banned to do any kind of professional activity in financial sector up to five years. The measures are introduced following the investigation’s findings which showed that those individuals failed to impose essential operational requirements to safeguard clients’ funds.
Have you realized that forex companies located in Cyprus are more prone to commit misconduct relative to brokers regulated by watch dogs like FCA and ASiC? Perhaps it is time for CySEC to sit down and consider reviewing its rules to audit the firms and tightening the requirements for acquiring license. Get more serious and stricter, CySEC.