The forex brokerage firm, London Capital Group (Cyprus) Ltd, is facing tough times. The London-based broker’s Cyprus business received a fine of EUR 40,000 as punishment. In a judgment made public on Friday, the Cyprus Securities and Exchange Commission (CySEC) levied an administrative penalty on London Capital Group (Cyprus) Ltd. The fine was decided at a CySEC board meeting held on April 5 of this year. The fine was levied because the LCG failed to comply with article 16(2) of Regulation (EU) 596/2014, which aims to prohibit abuse of the financial market.
The board mentioned that the forex broker lacks efficient systems and processes for detecting and reporting suspicious orders and transactions and ensuring that they are monitored. London Capital Group remained silent in response to the administrative punishment and the judgment pressed by the watchdog of Cypriot financial.
The Cyprus Financial Services Regulatory Authority is keeping a close eye on the currency and financial services markets.
Moreover, the government partially revoked Cyprus Investment Firm’s license. These are the people behind Libertex.com, a forex and CFD broker.
The regulatory decision was made on August 3 for a variety of factors. Multiple alleged breaches of required compliances were among them. The CySEC also discovered potential violations on the broker’s side in relation to the regulatory framework governing the marketing and sale of CFDs to retail clients.
The CySEC also revoked Globia Wealth Ltd’s CIF license in the month of July. The judgment was made on 17th May when the watchdog looked into the matter. According to CySEC, the firm decided to renounce the license.
About the London Capital Group
According to London Capital Group reviews, the LCG is one of the brokers to have assisted millions of consumers in buying and selling popular investment goods, including foreign currencies. LCG is a London Stock Exchange-listed broker regulated by the FCA and CySEC. Online forex brokers have always kept up with the ever-changing financial trading scene.