Brokerage firm NAGA Markets Europe has reached a settlement with the Cyprus Securities and Exchange Commission (CySEC) for €150,000 over possible violations of the country's laws.
NAGA Markets Europe, which is licensed in Cyprus, is a division of the publicly traded German NAGA Group.
According to CySEC, the settlement agreement follows a review and investigation into NAGA's compliance with several key articles of the Investment Services and Activities and Regulated Markets Act of 2017.
Specifically, the investigation for which the settlement agreement was reached included an assessment of the company's compliance for the period from January 2021 to April 2022, namely:
• Section 22(1) of the Act – with respect to the conditions of authorization and, in particular, the conditions set forth in Section 5(5)(b) and Section 17(2).
• Article 25(1), (2)(a)(iii), (2)(b), and (3)(a) of the Law – on general principles and information to be provided to clients.
• Article 26, Section (2)(a) of the Act – in relation to the assessment of suitability and appropriateness and reporting to clients.
• Article 28(7) of the Law – in relation to the obligation to execute orders on the most advantageous terms for the client.
• Article 42 of Regulation (EU) 600/2014 – regarding interference with the products of competent authorities.
The Cyprus Securities and Exchange Commission noted that the amounts received under the settlement agreement will be accounted for as income of the Permanent Fund of the Republic and not as income of the company itself.
NAGA previously announced a merger with Capex.com, with the combined company expected to have combined revenues of $250 million. The merger deal is expected to be completed by the end of the first half of 2024.
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