CySEC Settles Compliance Lapses with Depaho for €270,000

The Cyprus Securities and Exchange Commission () announced on Tuesday its settlement with forex and contract for difference broker Depaho Limited for €270,000.
Depaho is operating through its brand name, FXGM and provides services under the domain name www.fxgm.com. The company received a CIF license from the Cypriot regulator in 2011 and purchased the FXGM brand in 2013 from FX Global Markets (FXGM), which in turn renounced its license in the same year.

In the latest notification, the regulator stated that the brokerage was fined for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 for its activities between January 2018 and July 2019.
The regulator detailed that the brokerage violated the requirement for CIF authorization, compliance with organizational requirements, order execution requirements, principles and information of clients, and further had a conflict of interest.
Notably, in 2015 from the Cypriot regulator for non-compliance of several regulatory requirements.
Hunting for Non-Compliance
As Finance Magnates regularly reported, the CySEC imposed heavy fines on multiple brokers, including , , and , for lapses in compliances.
“CySEC…has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulator noted.
Meanwhile, the Polish financial regulatory body against CySEC-licensed Depaho last year for offering services in the country without any authorization from it.

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