The Goldenburg group hails from Cyprus and is known for on providing trading services for Forex and CFD instruments via brokerages which are wholly owned subsidiaries. According to recent statement released by the regulatory, Top Forex brand – a brokerage owned by Goldenburg group which has been active for last 5 years via which it provides forex trading services to some of the major European markets has failed to meet multiple compliance requirements due to which the group has been fined 170,000 Euros. The brokerage is registered and licensed by the Cyprus Securities and Exchange Commission more commonly known as CySEC. The main highlight among various compliance requirements violated by the brokerage is the allegation of company failing to keep proper records of services and transactions it has provided to customers.
For failing to meet this requirement, the company has been fined 50,000 Euros. Aside from this, the company has been fined 80,000 Euros as the brokerage failed to meet compliance regulations pertaining to honest dealings with clients. As per the report, from 80,000 Euros which is made for two issues, a fine of 40,000 Euro is for marketing activities made by the firms which have misled the company’s clients and the other 40,000 fine is just vaguely mentioned as piece of legislation stating investment firm must act professionally in accordance with best interests of its clients. Another fine of 30,000 Euro was levied on the group for its failure to ensure that third party companies used by the broker were meeting compliance standard requirements set by CySEC.
The law cited by CySEC for this point was non-specific in nature as the law refers to any third party service making it unclear on which companies the group was currently working has failed to ensure compliance standards. There are also two separate 5000 Euro fines, one for failure on Goldenburg Group’s end to notify CySEC over their plans to open new office in different jurisdiction and other for the broker failing to meet compliance standards regarding tied agents. As per European law, tied agents are individuals /companies who promote an investment firm’s services and can accept client orders to be undertaken by said investment firm making them liable for meeting compliance standards set by regulatory authority.
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