Former NessFX, OptionWeb owner settles with CySEC for €90 000

Former NessFX, OptionWeb owner settles with CySEC for €90 000

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Lionsman Capital Markets (Cyprus) Ltd, former owner of the forex brokerage NessFX and binary options broker OptionWeb, has settled with the Cyprus Securities and Exchange Commission (CySEC) for €90 000.

According to CySEC’s statement, the sum was paid by the company over possible violations of the financial markets and services laws, in their part regarding authorization requirements and conduct of business obligations when providing investment and ancillary services to clients.

The regulator does not provide further details, but the quoted articles of the Investment Services and Activities and Regulated Markets Law suggest the violations were regarding marketing materials, sufficient information to clients about potential risk and lack of proper internal procedures.

Those violations are frequently punished by CySEC. For example, recently the regulator temporarily banned the forex broker XTrade from taking in new clients. Later the ban was lifted.

Lionsman Capital Markets still claims on its LinkedIn page that it owns OptionWeb and NessFx. In fact, however, currently OptionWeb is owned by Spot Capital Markets Limited – another CySEC-regulated company. The forex brokerage is owned by FxNet Limited, also a Cyprus investment firm.

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