Cyprus financial regulator CySEC announced it reached a €50,000 settlement with FX and CFD solutions provider Broctagon Prime over possible violations of client information requirements that occurred in 2021.

The Cyprus Securities and Exchange Commission (CySEC) said the settlement covers potential breaches of rules requiring proper disclosure of information to clients. The violations allegedly happened during the third quarter of 202, when Broctagon Prime Ltd may have failed to follow general principles for providing information to customers.

Broctagon Prime Pays €50K to Settle Cyprus Regulator Dispute

CySEC investigated whether the company violated articles 25(1) and 25(3)(a) of Cyprus investment services law, which govern how financial firms must communicate with their clients. The regulator didn't specify exactly what information Broctagon Prime failed to provide or how the alleged violations occurred.

Broctagon Prime, which operates as a liquidity and technology provider for FX and CFD trading, has already paid the full settlement amount. The company holds a market maker license from CySEC and has been regulated by the authority since 2017.

The settlement represents the second penalty CySEC has announced this year involving a Cyprus-based financial firm. In May, the regulator reached a separate €20,000 settlement with ZFN Europe Ltd over licensing violations.

CySEC emphasized that settlement funds go directly to Cyprus's treasury rather than to the regulator itself. The commission has authority under Cyprus law to settle potential violations when it believes reasonable grounds exist that rules were broken.

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Broctagon FinTech Group

Broctagon Prime operates as part of the Broctagon FinTech Group and provides trading services across multiple asset classes including spot foreign exchange, commodities and contracts for difference. The company targets both retail traders and institutional clients.

In April, FinanceMagnates.com reported that the company incorporated Takeprofit Tech's investment management solution into its brokerage platform, enabling foreign exchange brokers to manage multiple customer accounts using a mini-hedge fund structure.

The settlement doesn't constitute an admission of wrongdoing by Broctagon Prime, and CySEC's announcement didn't indicate whether the company faced any additional restrictions on its operations.