RoboMarkets Ltd has paid a €100,000 settlement to the Cyprus Securities and Exchange Commission over potential violations of investment services rules, particularly restrictions on selling CFDs to retail clients. The payment follows CySEC’s compliance review examining organizational requirements, client information disclosures, and product suitability assessment procedures. The regulator specifically scrutinized RoboMarkets’ marketing, distribution, and sales practices for retail CFD products but has not disclosed the specific violations that triggered the settlement.
This marks RoboMarkets’ second regulatory action from CySEC in recent years. In 2023, the broker was ordered to halt non-monetary incentives like race tickets and branded merchandise to retail clients, which violated EU product-intervention rules on CFDs. The settlement comes as RoboMarkets pivots away from European retail CFDs toward Middle Eastern markets, having secured a Category 1 license from Dubai’s Securities and Commodities Authority in July 2024 for its new Robomarkets MENA entity.
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Brokers operating under CySEC jurisdiction should review their retail CFD marketing and client assessment procedures immediately to avoid similar enforcement actions.
Source: Finance Magnates