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The Cyprus Securities and Exchange Commission (CySEC) announced it has fined TechFinancials (AIM: TECH), the parent company of the OptionFair binaries broker the combined sum of EUR 138 000 for a number of offences.
The smallest fine, for EUR 3000 is for non-compliance with authorization requirements and procedures regarding technical compatibility and information sent to the customers. The largest fine, for EUR 40 000, is imposed for not properly assessing the competence of its clients and failing to establish if the instruments on offer are compatible with the client’s requirements. By Cypriot law, traders need to provide information about their experience and competence to the brokers.
Other fines are imposed for failure to comply with requirements for fair advertising, not informing clients for possible risk in trading, not taking sufficient measures for avoiding undue operational risk when outsourcing services to third parties.
According to Finance Magnates, TechFinancials said it will take the necessary corrective measures and will make sure those violations do not happen again.
Meanwhile, TechFinancials has reported a 30% year-on-year growth of its B2B business – software licensing, binary options trading platform and has signed up five new clients since the beginning of the year. The company is also planning to continue its Asian expansion.
According to earlier reports, the situation with the B2C business – OptionFair that is, is not so rosy, mostly because of the tighter regulation.