Naga Markets Settles with CySEC for €150K over Violations

Naga Markets Settles with CySEC for €150K over Violations

Time Stamp: December 29, 2023 8:14 AM
Source Node: 2419106

The Cyprus
Securities and Exchange Commission (CySEC) has reached a €150,000 settlement
with Naga Markets Europe Ltd. for various regulatory violations between
January 2021 and April 2022. The Cyprus-licensed company is part of the
publicly listed NAGA Group in Germany and operates the trading brand of the
same name.

According
to the CySEC announcement, the settlement follows a desk-based review and
investigation into NAGA’s compliance with several key articles of the
Investment Services and Activities and Regulated Markets Law.

Specifically,
CySEC found possible violations relating to NAGA’s authorization conditions, organizational
requirements, information provided to clients, suitability and appropriateness
assessments, best execution of client orders, and product intervention rules.

While
details of the specific failures were not disclosed, the fine reflects CySEC’s
stricter approach recently to monitoring standards and enforcement actions
within the Cyprus financial sector.

Last week,
NAGA announced its intention to merge with Capex.com, anticipating a combined
revenue of $250 million for the merged entity. The merger is expected to be
completed before the end of the first half of 2024. Meanwhile, the broker also
published its official results for the first half of 2023, which were better than the preliminary results. According to official data, the company
earned €25.2 million, nearly €5 million more than the figures published in
July.

Risin Number of CySEC
Sanctions

Naga
Markets, which received its CIF license from CySEC in 2013, has already paid
the €150,000 settlement amount to the Cypriot Treasury. The company joins several Cyprus-regulated brokers to be sanctioned financially over the past
year.

Just yesterday (Thursday), Cyprus’ financial regulatory body imposed a €50,000 fine on BCM Begin Capital Markets for potential breaches of local regulatory standards. The company has settled the fine. Additionally, a few weeks earlier, Titanedge Securities Ltd, which operates the CFD brokerage brands TradeEU.com and Titan Edge, was penalized €90,000 for likely compliance issues spanning from October 2022 to July 2023.

In another recent development, the Cyprus financial oversight authority took action against TriumphFX, a regulated retail broker. The authority suspended the shareholder rights due to management concerns, centering on the sole indirect shareholder, Chong Chun Hseung. This action follows previous warnings from Asian regulatory bodies issued years earlier.

CySEC noted
that settlement agreements are based on the particular circumstances of each
case. Firms are expected to take corrective actions and strengthen internal
procedures to ensure full compliance in the future.

The Cyprus
Securities and Exchange Commission (CySEC) has reached a €150,000 settlement
with Naga Markets Europe Ltd. for various regulatory violations between
January 2021 and April 2022. The Cyprus-licensed company is part of the
publicly listed NAGA Group in Germany and operates the trading brand of the
same name.

According
to the CySEC announcement, the settlement follows a desk-based review and
investigation into NAGA’s compliance with several key articles of the
Investment Services and Activities and Regulated Markets Law.

Specifically,
CySEC found possible violations relating to NAGA’s authorization conditions, organizational
requirements, information provided to clients, suitability and appropriateness
assessments, best execution of client orders, and product intervention rules.

While
details of the specific failures were not disclosed, the fine reflects CySEC’s
stricter approach recently to monitoring standards and enforcement actions
within the Cyprus financial sector.

Last week,
NAGA announced its intention to merge with Capex.com, anticipating a combined
revenue of $250 million for the merged entity. The merger is expected to be
completed before the end of the first half of 2024. Meanwhile, the broker also
published its official results for the first half of 2023, which were better than the preliminary results. According to official data, the company
earned €25.2 million, nearly €5 million more than the figures published in
July.

Risin Number of CySEC
Sanctions

Naga
Markets, which received its CIF license from CySEC in 2013, has already paid
the €150,000 settlement amount to the Cypriot Treasury. The company joins several Cyprus-regulated brokers to be sanctioned financially over the past
year.

Just yesterday (Thursday), Cyprus’ financial regulatory body imposed a €50,000 fine on BCM Begin Capital Markets for potential breaches of local regulatory standards. The company has settled the fine. Additionally, a few weeks earlier, Titanedge Securities Ltd, which operates the CFD brokerage brands TradeEU.com and Titan Edge, was penalized €90,000 for likely compliance issues spanning from October 2022 to July 2023.

In another recent development, the Cyprus financial oversight authority took action against TriumphFX, a regulated retail broker. The authority suspended the shareholder rights due to management concerns, centering on the sole indirect shareholder, Chong Chun Hseung. This action follows previous warnings from Asian regulatory bodies issued years earlier.

CySEC noted
that settlement agreements are based on the particular circumstances of each
case. Firms are expected to take corrective actions and strengthen internal
procedures to ensure full compliance in the future.

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