Tradernet and CySEC Settle For Fine Of €80,000

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The Cyprus Securities and Exchange Commission, or CySEC, has made an announcement. This announcement is in regard to a settlement the Cypriot regulator had reached with Tradernet Limited. While the violations within the settlement remain unspecified, Tradernet has agreed to pay €80,000 as settlement.

Finding Tradernet In Suspected Breach Of CPF License

The Cypriot regulator detailed that the CIF license holder, Tradernet Ltd, has reached a settlement with CySEC. This was in regards to possible violations the company may have made. The suspected violations were against the Investment Services and Activities and Regulated Markets Law of 2017, according to CySEC.

Tradernet, as seen on its website, holds operations within Ukraine, Russia, as well as Kazakhstan. There, the company offers trading services in bonds, stocks, as well as exchange-traded funds, or ETFs.

It should be noted that, while the exact details of the violations that Tradernet had done aren’t known, it is known that these violations were discovered shortly after an on-site inspection of the company. The regulator did this inspection back in March of this year.

Bits And Pieces Known

As the regulatory notice detailed, CySEC discovered several non-compliance issues with the broker, finding it in multiple areas. This includes some issues with the management body, as well as “organizational requirements” that CySEC concluded was against the CIF licensing.

Further, if vague, details about the matter, is that Tradernet gave some inaccurate information to CySEC, though what information the regulator was given isn’t known.

According to the statement, CySEC cites the Cyprus Securities and Exchange Commission Law of 2009, article 37(4). This law allows the regulator to reach a settlement with a firm for any possible and actual violation, omission, or act. These actions must have a reasonable grounds for belief that it took place in direct violations of the supervises legislation that CySEC has jurisdiction over.

It should be noted that Tradernet had already paid this fine in full, as well.

Actively Trying To Keep Finance Safe

CySEC is well known for being vigilant against any violations of its laws under its regulated entities. It also works closely alongside other regulators across the globe, such as the Financial Conduct Authority (FCA) of the UK. Through these corporations, the Cypriot regulator manages to flag any broker abusing the passport role within Europe.

In recent times, CySEC had mandated all of the entities under its regulation to implement the so-called “Travel Rule” that the Financial Action Task Force (FATF) has mandated.

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