The Cyprus Securities
and Exchange Commission has reached a €100,000 settlement with RoboMarkets Ltd
over possible breaches of investment services rules, including restrictions on
the sale of CFDs to retail clients.
The settlement is not
the first regulatory action against RoboMarkets. In 2023, CySEC
ordered the broker to stop offering non-monetary rewards, including race
tickets and branded merchandise, to retail clients. The regulator said the
practice breached EU product-intervention rules on CFDs.
RoboMarkets Faces
Compliance Review
RoboMarkets has
already paid the settlement amount, according to a notice published by CySEC.
The regulator’s review
examined several areas of the broker’s operations. These included its
organisational requirements, the information provided to clients and the
procedures used to assess whether investment products were appropriate for
clients.
CySEC Withholds Details of Violations
CySEC also examined
the company’s compliance with rules governing the marketing, distribution and
sale of CFDs to retail clients.
CySEC did not disclose
the specific practices or incidents that led to the possible violations.
Under Cypriot law,
CySEC can settle cases where there are reasonable grounds to believe that a
breach of the legislation it supervises may have occurred.
Finance Magnates contacted RoboMarkets for
comment on the settlement. As of publication, the broker had not responded.
RoboMarkets Targets Middle East
Meanwhile, RoboMarkets
has shifted away from retail CFDs in Europe and expanded
its focus in the Middle East. The group obtained a Category 1 licence from
Dubai’s Securities and Commodities Authority for its local entity, Robomarkets
MENA for Financial Brokerage.
The entity was
established in July 2024. The Category 1 licence allows the firm to provide
securities dealing and brokerage services, including trading in global markets,
non-exchange-traded derivatives and spot FX.
This article was written by Tareq Sikder at www.financemagnates.com.
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