Money for Cyprus! Maxiflex had to pay €370,000 for possible compliance violations

The Maxigric Case
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On 5 Dec 2020, the CySEC announced a board decision that has already been made on 5 Oct 2020. It concerns Maxiflex Ltd of the Israeli Roy Almagor. Maxiflex had to make a payment of €370,000 to the Treasury of the Republic of Cyprus. Reasonable people would call this a penalty payment but CySEC prefers the term settlement payment. As always, the CySEC remains very vague in its statement and does not really explain what potential violation Maxiflex might have committed. Lately, Almagor’s Maxiflex and Maxigrid have been facilitated in broker scams and saw their bank accounts with GlobalNetInt terminated.

For possible violations of Τhe Investment Services and Activities and Regulated Markets Law of 2017, as these appeared between January 2019 –September 2020, following CySEC’s investigations. More specifically, the settlement reached involved the assessment of the Company’s compliance with:

  1. article22(1) of the Law, as to the authorization conditions of articles17(2), 17(3)and17(6) of the Law, regarding the organizational requirements with which a CIF is required to comply,
  2. article24(1) of the Law regarding conflicts of interest,
  3. article25, paragraphs(1) and(3), of the Law regarding the general principles and information to clients,
  4. article 26, paragraphs (2)(a) and (3)(a), of the Law regarding the assessment of suitability and appropriateness and reporting to clients, and
  5. article28, paragraphs (1)(a) and (8), of the Law regarding the obligation to execute orders on terms most favorable to the client.

The settlement reached with the Company, for the possible violations, is for the amount of €370.000. The Company has paid the amount of €370.000. It is noted that all amounts payable from settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC.

  1. Sandokan says:

    if Cysec awards them compensation, it means that they have grossly violated certain provisions. According to domestic fraudsters ….

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