The Cyprus Securities and Exchange Commission (CySEC) has fined the brokerage firm BDSwiss for non-compliance with legislation.
During 2021, the company failed to comply with the requirements of Article 42 of Regulation (EU) 600/2014, in particular Paragraph 4 of Point 1(a) (initial margin) and (e) (risk warning), according to the decision of the CySEC Board.
According to the regulator, the broker allowed offshore companies with which it was associated to refer to Cyprus Investment Firm (CIF) status as a CYSEC-licensed CIF in order to attract clients. In doing so, the companies offered CFD investment services without requiring clients to pay an initial margin or giving them risk warnings.
According to the decision of the Cyprus Securities and Exchange Commission, the broker BDSwiss was fined €100,000.
BDSwiss has been licensed by CySEC since May 2013.
The broker has been operating on the Forex market since 2012 and has won awards such as "Best Market Research Service Provider" and "Best Forex & CFD Broker" from the World Finance Awards. The company offers its clients access to trading CFDs, ETFs, stocks, indices, and cryptocurrencies.
Also read: Interactive Brokers launches Paxos withdrawals.
