CySEC enforces measures against TriumphFX amid shareholder concerns. Stringent actions are taken to protect investors and ensure market integrity.
The forex broker news this time coming from the Cyprus Securities and Exchange Commission (CySEC), as the regulatory body is implementing enforcement measures against Triumph Int. (Cyprus) Ltd, the operator of TriumphFX, due to concerns regarding the influence of its sole indirect shareholder, Chong Chun Hseung.
CySEC has suspended Hseung's voting rights, exercised through CCH Triumph Cyprus Trust, and prohibited executive directors Christoforos Christoforou and Joel Prakash Benedict from management duties for two years.
This move comes as this low-spread broker and related entities are listed on investor alert lists in Singapore and Malaysia. TriumphFX has been on the MAS warning list in Singapore since August 4, 2021, and on the Malaysian regulatory commission's list since 2020. CySEC deems Hseung's influence detrimental to the sound management of the firm.
The enforcement measures will be effective after two months and last until this Cyprus-based broker is removed from foreign jurisdictions' investor alert lists. This STP broker has the option to seek a judicial review of CySEC's decision.
CySEC aims to protect investors and address management and shareholder influence concerns, utilizing its powers under local legislation. Simultaneously, CySEC is actively seeking experts to identify potential regulatory violations through a €240,000 public tender.