EU based Forex Service Provider Goldenburg Group Fined 170000 Euro over Regulatory Violations

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Goldenburg Group

EU based Forex Service Provider Goldenburg Group Fined 170000 Euro over Regulatory Violations

May 4, 2019

Goldenburg GroupThe 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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