Yesterday (21/5) CySEC announced that they have issued fines to SkyFX and its parent company, Trademarker, due to poor practices where services were outsourced to third party company in Israel.

Yesterday (21/5) the Cyprus Securities and Exchange Commission, CySEC, announced that they have issued fines to SkyFX and its parent company, Trademarker, due to poor practices where services were outsourced to third-party companies in Israel.

Cyprus CySec Fines SkyFX For Outsourcing Job To Israel

According to CySEC, SkyFX has violated several regulations from the 2007 Investment Services and Activities and Regulated Markets Law. The first is Article 28 (1) which stipulates that an investment firm should always comply with the conditions under which it was granted authorization. Additionally, they also breached Article 13 by failed to ensure shareholders' suitability and Article 18 (2d) on outsourcing execution of investment services. Consequently, they were fined 10,000 EUR on this accusation alone.

Furthermore, the offshore brokerage was also fined for outsourcing the company's services to a third-party in Israel, and allocating jobs for non-licensed entities. The second part of the offenses gave them another 10,000 EUR of fines which makes it a total of 20,000 EUR of fines.

However, SkyFX official statements quoted by Financemagnates and Leaprate revealed that the breaches may have happened quite some time ago. They said, The ownership of SkyFX and Trademarker would like to acknowledge the following, in regards to the fine issued by CySEC to our company on 20 May 2015, the investigation stems from poor practices which were reported by clients in August of 2013, prior to our purchase of the SkyFX/Trademarker brand and company. While we are pleased this matter has now come to a close, we feel it is correct to acknowledge this very lengthy investigation began nearly two years ago.