CySEC fined OptionRally €138,000. The reason is inaccurate information on the broker’s website
The binary options broker takes part in one of the most significant sponsorship projects in the history of the industry.
The Cyprus Securities and Exchange Commission (CySEC) has announced that it has fined binary options broker OptionRally €138,000 for violating investment services and regulated markets laws. OptionRally is regulated by CySEC and had to comply with the laws of the Republic of Cyprus in order to continue to be able to use the trading license issued by the Cyprus regulator, which allows the broker to offer its services throughout Europe.
The organization took part in one of the largest sponsorship events in the history of the binary options industry, the company’s logo is depicted on Ferrari Formula 1 racing cars.
CySEC, on the other hand, imposes a fine for non-compliance with several articles of the law on the provision of investment services and the law on regulated markets.
For what exactly they imposed a fine.
The Cyprus Financial Regulator imposed a fine of €3,000 for non-compliance with Section 28(1) of the law, namely for OptionRally’s failure to establish adequate policies and adequate procedures to ensure that the advertising material complies with legal regulations. For example, the broker does not have internal guidance or even adequate records with an objective evaluation of marketing materials.
A second fine of €20,000 was imposed for breaching Section 18(2) of Directive 1, implying that the broker did not take the necessary measures to reduce the risks in the transfer of assets or work functions. For example, the company did not control the process of preparing advertising material.
Further, a 30,000 fine was imposed for the fact that the broker did not act openly when providing bonuses to its clients.
Also, a fine of 40,000 euros was charged due to the fact that during registration, the broker did not ask clients about their work experience or whether they knew that trading was a risky business. So customers could not assess how suitable this type of activity was for them.
Finally, an administrative fine of €30,000 was imposed for the broker providing false information, which in turn prevents clients from assessing potential risks and the very nature of the investment services that the company provides.
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