Do not invest more money than you can afford to lose.
The Cyprus Securities and Exchange Commission (CySEC) said on Thursday it has imposed an administrative fine of €63,000 to Cyprus Investment Firm (CIF) PriorFX. The regulator has found the forex broker non-compliant with the Investment Services and Activities and Regulated Markets Law.
The decision was adopted at a CySEC board meeting on 23 January and was announced a month later.
PriorFX offered investment advice or portfolio management without obtaining sufficient information about clients’ financial situation and objectives and has not made sure its clients are knowledgeable enough on the relevant investment products and services.
In addition, the broker has failed to establish sufficient policies to ensure its managers and employees meet the regulatory obligations.
PriorFX is a retail forex brokerage registered with and regulated by the CySEC. It offers trading in forex currencies, contracts for difference (CFDs) on gold, silver, oil and indices. The broker supports MetaTrader 4 (MT4), the most widely-used forex trading platform.
The CySEC licenses, supervises, and regulates players on the local capital market, including forex and binary option brokers. Cyprus is among the main regulation destinations of choice for most brokers that seek to operate in the EU. CIF licensees are free to expand within all countries in the European Economic Area (EEA) thanks to a EU directive.
