Multiple forex brand operator The Goldenburg Group recently settled with the Cyprus Securities and Exchange Commission (CySEC) for €270,000. The settlement was regarding possible regulatory violations by the group.
TopForex parent settles with the regulator
The Goldenburg Group has multiple forex brands and is licensed with the CySEC. It operates a retail brokerage brand TopForex. The regulator released a statement on Monday, saying that the firm has possibly failed to meet multiple compulsory regulations. It has decided to settle with the firm for violations that could have occurred between January 2018 and October 2020.
The regulator said that the possible violations were related to organizational requirements and some conflicts of interest. It also flagged the forex broker for its failure to assessment the appropriateness of its clients. Few other violations could have possibly occurred during the period as well.
CySEC has flagged other brokerages as well
The violations were flagged with some other brokerages as well and the regulator settled with them as well. It wrote in a notice,
“CySEC…may reach a settlement agreement regarding any violation or possible violation, act or omission for which there is reasonable ground to believe that is in breach of the provisions of legislation under the regulatory remit of CySEC.”
The Goldenburg Group holds a Cyprus Investment Firm (CIF) license which it acquired in July 2014. It runs several forex brands like www.tradecentrum.com, www.fxglobal.com, www.toptrader.eu, www.topforex.com, www.goldenburggroup.eu. The operator has previously had some run-ins with the law. In 2019, it also faced a fine of €170,000 for multiple violations.
Cyprus has become one of the preferred jurisdictions for brokerages who want entry into the European markets. The jurisdiction has been one of the most cost-effective ways for the brokers. Other regulators in the Eurozone are getting concerned with the compliance violations happening because of Cypriot firms.