The Cyprus Securities and Exchange Commission (CySEC) has reached a €100,000 settlement with RoboMarkets Ltd over possible breaches of investment services rules, including restrictions on the sale of contracts for difference (CFDs) to retail clients.
According to a notice published by CySEC, RoboMarkets has already paid the settlement amount. Under Cypriot law, CySEC may settle cases where there are reasonable grounds to believe that a breach of the legislation it supervises may have occurred.
The regulator’s review covered several aspects of RoboMarkets’ operations. These included the firm’s organisational requirements, the information it provided to clients and the procedures used to assess whether investment products were appropriate for clients. CySEC also examined the company’s compliance with rules governing the marketing, distribution and sale of CFDs to retail clients.
CySEC did not disclose the specific practices or incidents that led to the possible violations. The settlement relates to potential breaches of investment services rules rather than any confirmed infringement publicly detailed by the regulator.
Prior regulatory action against RoboMarkets
The settlement is not the first regulatory action taken by CySEC against RoboMarkets. In 2023, CySEC ordered the broker to stop offering non-monetary rewards, including race tickets and branded merchandise, to retail clients. The regulator said that such practices breached European Union product-intervention rules on CFDs, which impose restrictions on how these products may be marketed and incentivised.
The current settlement underscores CySEC’s focus on the conduct of investment firms offering CFDs to retail clients, particularly in relation to marketing practices, client information and product appropriateness assessments.
RoboMarkets’ regional focus shift
Meanwhile, RoboMarkets has shifted away from retail CFDs in Europe and expanded its focus in the Middle East. The group obtained a Category 1 licence from Dubai's Securities and Commodities Authority for its local entity, Robomarkets MENA for Financial Brokerage.
The new licence in Dubai indicates that the group is developing its presence in the Middle East region through Robomarkets MENA for Financial Brokerage, while adjusting its activities related to retail CFDs in the European market.
