The Cyprus Securities and Exchange Commission (CySEC) has fined IC Markets (EU) Ltd €50,000 for failing to meet the standards for client order execution and cost transparency. CySEC decided the fine in a board meeting on July 1, 2024. It pertains to infringing the investment and regulatory standards.
Another IC Markets Blow from CySEC
CySEC has fined IC Markets (EU) Ltd €30K for failing to ensure the best probable results for its clients during the order execution process. According to CySEC, the company inadequately considered factors such as size and price in its process.
Also, IC Markets received a €10K penalty for failing to establish and implement practical standards for complying with its client orders execution obligations.
CySEC has imposed another €10K fine on the firm for providing details of unclear and incomprehensive costs and charges. The failure hindered the clients’ understanding of cost implications and their impact on return on investment.
IC Markets strongly denies the regulator’s decision, saying the fines are unjustified and don’t reflect the company’s true operational standards.
The firm firmly disagrees with the decision, mainly because it didn’t take adequate measures to ensure its clients get the best probable execution outcomes. IC Markets insists on maintaining robust internal systems like comprehensive pricing ex-ante checks and taking prompt corrective actions when needed.
IC Markets’ Earlier Fine
CySEC had fined the company €30K for violating leverage rules by offering leverage up to 1000:1 through an offshore entity. The EU leverage limit for forex and CFD brokers is 30:1.
IC Markets claims the regulator ignored audited evidence and relied on a former employee’s biased testimony. It plans to appeal the decision, terming the regulatory process as partial and opaque.
