After Cyprus financial regulator (CySEC) penalized FXGM for the massive amount of €250 000 last year, FXGM started cooperating and finding solutions to settle its conflicts with its customers so far.
On 12th of October 2015 CySEC imposed an administrative sanction on FXGM for operating against the rules of the European legislation for investor protection called MiFID.
Firstly, not only did the company provided investment advices and acted dishonestly, unprofessional and not fairly, but also the information which it provided was misleading, not clear enough and against the customer interests.
Secondly, FXGM did not warn the client whether the complex financial instrument is suitable for them, the company again did not provide sufficient information whether the clients were able to understand the risks of investing through this type of financial services.
Moreover, the company officials did not monitor access and property of their clients, and also FXGM did not comply with the European directives to create proper system against money laundering including the principles “Due diligence” and “Know your customer”.
We do not have enough information whether the company continued to accost and provide unsolicited services, but the administrative fine should have some effects especially for publicly showing that CySEC is trying to put some orders on the Cyprus financial sector, which these recent years was blown away by several scandals in France and other EU countries for its lack of supervision.