CySEC fines CIF Goldenburg Group Ltd €170.000
The Goldenburg Group, owners of TopForex brokerage firm, was fined of 170,000 euros by the Cyprus Securities and Exchange Commission (CySEC) recently. The company’s failure to meet compliance standards led to action by the regulator.
According to a statement released by the regulator, the Goldenburg Group failed to maintain adequate records of the services and transactions it provided to customers. The firm received 50,000 euros fine for this failing.
It also received two separate fines of 40,000 euros each for failing to meet regulatory guidelines on honest dealings with clients. One of the fines was not specific in its scope but referenced a broad piece of legislation that indicates that an investment firm should “act honestly, fairly and professionally in accordance with the best interests of its clients.” The other 40,000 euro fine, however, was more specific. CySEC’s statement indicates that this one was given to the firm as it misled clients via its marketing activities.
It added 30,000 euros fine for failing to ensure that third-party companies used by the broker were meeting compliance guidelines. A smaller 5,000 euros fine was put on the firm for failing to meet compliance standards regarding tied agents. The group received another 5,000 euro fine for failing to properly notify the regulator that it was planning to open a new office in a different jurisdiction.