Cyprus-based investment firm Colmex Pro has reacheda €200,000 settlement with the Cyprus Securities and ExchangeCommission (CySEC) over possible regulatory violations spanning a two-yearperiod, the regulator announced today (Tuesday).
NicosVassiliou, the CEO of Colmex Pro told Finance Magnates that the agreement “does notconstitute an admission of any wrongdoing” and relates to”a historical compliance review” covering a past period.
Colmex Pro Settles With CySEC for €200,000
According to the regulatory announcement, theinvestigation covered Colmex Pro’s activities between January 17, 2021, andFebruary 24, 2023. The regulator identified potential violations acrossmultiple areas, including CIF authorization requirements, organizationalstandards, conflict of interest management, and client informationdisclosures.
CySEC also flagged possible breaches related toappropriateness assessments for clients, best execution obligations, andproduct intervention requirements specific to contracts for difference (CFDs)marketed to retail clients. It is worth noting that the regulatory accusations pertain only to the Cypriot branch, while the broker also has entities in other jurisdictions, including Israel and South Africa.
“In line with our commitment to transparency and ongoing regulatory cooperation, the Company has reached a mutually agreed settlement with CySEC,” Vassiliou commented.
“We have already implemented all requiredenhancements to our compliance framework and remain dedicated tomaintaining the highest standards of conduct and clientprotection,” he added. “The matter pertains to a past period and forms part of our broader efforts to ensure our internal controls and procedures remain robust and aligned with evolving regulatory standards.”
The settlement amount has been paid in full, withCySEC noting that all settlement funds are directed to the Treasuryof the Republic of Cyprus rather than becoming income for theregulator itself.
The settlement addresses potential breaches of theInvestment Services and Activities and Regulated Markets Law of 2017 andEuropean Union Regulation No. 600/2014, following a supervisory reviewconducted by CySEC.
CEO’sBackground with CySEC and Previous Settlements
Vassiliou joined Colmex as CEO relatively recently, taking the helm of the CySEC-licensedbroker in late 2024. Notably, he spent four years from 2016 to 2020 working forthe regulator as an Officer in the Market Surveillance and Investigationdepartment. His familiarity with Cyprus’s regulatory structures and personnellikely facilitated reaching a mutually satisfactory agreement.
This isn’tColmex’s first settlement with CySEC. In 2019, Finance Magnates reported thatthe broker reached a similar €50,000 settlement for potential violations. Thiswas linked to an earlier penalty imposed on the broker in 2016, also by theCypriot regulator.
The 2016fine amounted to €100,000 and addressed issues such as inadequate policies andprocedures for evaluating customer compatibility, knowledge, and experience, aswell as failure to mitigate unnecessary operational risks. The regulator alsofound that information on the broker’s website, online customer service, andadvertising was not fair, clear, or transparent.
Accordingto the current CEO, this latest settlement concludes a multi-year regulatoryprocess between Colmex and CySEC.
This article was written by Damian Chmiel at www.financemagnates.com.
