IC Markets Hit with €50K Fine by CySEC

IC Markets faces a €50K fine from CySEC for order execution and cost transparency breaches, adding to prior penalties.

Key Points

• CySEC fined IC Markets (EU) Ltd € 50,000 for issues related to client order execution and cost transparency.
• This fine follows a previous €200,000 penalty for breaching EU leverage limits. IC Markets disputes both fines, claiming they are unjustified.

The Cyprus Securities and Exchange Commission (CySEC) has again fined IC Markets (EU) Ltd. € 50,000 for regulatory breaches. However, this latest penalty, announced on September 4, 2024, follows a previous €200,000 fine levied against the firm for exceeding EU leverage limits.

Details of the New Fine

The fine comprises three components:

1. €30,000 for Order Execution Failures: CySEC found that IC Markets failed to ensure optimal client outcomes during order execution. The regulator noted deficiencies in considering key factors like price and order size.
2. €10,000 for Inadequate Compliance Measures: The company was penalized for failing to implement effective measures to meet its obligations concerning client order execution.
3. €10,000 for Poor Cost Transparency: IC Markets did not provide clear and comprehensive information about costs and charges, impairing clients’ understanding of the financial impact on their investments.

CySEC formalized its decision during a July 1, 2024, board meeting, reflecting its ongoing scrutiny of IC Markets‘ compliance with the Investment Services and Activities and Regulated Markets Law.

IC Markets Hit with €50K Fine by CySEC

CySEC’s Announcement CySEC announced via its official Twitter account, highlighting the need for transparent practices and adherence to regulatory standards. 

IC Markets’ Response

IC Markets (EU) Ltd has vigorously disputed the latest fine, labeling it unjustified. Furthermore, the company issued a statement criticizing CySEC’s conclusions, asserting that its internal systems and compliance measures are robust and effective. So, it rebutted claims about order execution, emphasizing its commitment to comprehensive pricing checks and corrective actions. 

Previous Penalty and Dispute

This recent fine adds to IC Markets‘ regulatory woes. The company faced a €200,000 fine for breaching EU leverage limits, allegedly offering leverage up to 1000:1 through an offshore entity despite the EU’s 30:1 cap for FX and CFD brokers. IC Markets has contested this fine, accusing CySEC of relying on biased testimony and disregarding audited evidence. Moreover, the company plans to appeal the decision, criticizing the regulatory process for lack of impartiality and transparency.

As IC Markets prepares to challenge both fines, the regulatory landscape for trading companies remains under tight scrutiny, underscoring the need for adherence to compliance and transparency standards.

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