The Cyprus Securities and Exchange Commission (CySEC) has announced publicly that it will be imposing a couple of administrative fines on Banc de Binary. The regulated binary options broker has been on the radar of the watchdog for quite some time now and this will be the second occasion in which the firm will have to pay a penalty to the Cypriot regulator.
The fine was administered to Banc de Binary at a regulatory meeting on the 30th of March. informing the investing public that at the meeting held on March 30, 2015, it was decided to impose a total amount which the binary options broker has to pay of €20,000 ($22,800).
The figure includes administrator penalties on two counts. The first infringement made by the broker is for failing to get the approval of the regulator for additional products which it started to offer. The total bill on this count is €10,000 ($11,400).
A violation of transparency is the second reason for which Banc de Binary has been fined. The firm failed to disclose a close link with another corporate entity. This markup totaled another €10,000 ($11,400).
Elaborating on the gravity of the violations the regulator outlined that every Cyprus Investment Firm (CIF) has to act within the limits of its operating license. The issue with the administrative mistake which Banc de Binary made is that the funds of its clients will not be protected in case of conducting unlicensed financial trading activity.
In the second case, the firm failed to communicate to CySEC some information required by existing rules and regulations. The watchdog has recently become more vigilant when relating to associations with third parties. The fine has been imposed on Banc de Binary because it failed to follow the appropriate compliance procedures outlined by the Cypriot regulator.
The last violation is exacerbated because last year CySEC fined the firm for concealing information when it made its regulatory application. The regulator at the time imposed a €10,000 fine.