Safecap Investments (Markets.com) Fined €168,000 By CySEC

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Safecap Investments Ltd, owner of Markets.com and other forex brokers, has been fined €168,000 by the Cyprus Securities and Exchange Commission (CySEC). CySEC made the decision at meetings held on March 2, 2015 and May 25, 2015. CySEC issues the fine due to Safecap violating the Investment Services and Activities and Regulated Markets Law of 2007. The specific directives that Safecap Investments violated are:

  •  Directive DI144-2007-01 of 2012 for the Authorisation and Operating Conditions of CIFs. This directive describes requirements and conditions that a Cyprus Investment Firm (CIF) must meet in order to hold a license in Cyprus. It details requirements for how the CIF:
    • is organized
    • manages risk and conducts internal audits
    • manages business continuity
    • handles personal transactions
    • outsources operations
    • safeguards client assets
    • manages potential conflicts of interest
  • Directive DI144-2007-02 of 2012 for the Professional Competence of Investment Firms and of the Natural Persons Employed by Them. This directive describes appropriate conduct that CIFs and their employees must adhere to when dealing with clients and potential clients. Requirements include how the CIF::
    • will provide information to clients and potential clients
    • assess the suitability and appropriateness of a service for a client
    • report information to clients
    • execute client orders
    • act as a counterparty to clients

CySEC did not specify exactly how Safecap failed to comply with the directives. However, many of the requirements in these directives are of very high importance to forex traders. CySEC based the decision on investigations carried out in May 2013 and October 2014.

So Is Safecap Investments Ltd, And The Forex Brokers They Own A Scam?

There is simply not enough information to know whether Safecap Investments are scammers. CySEC has not given enough information about the violations to evaluate how serious this issue is. However, the size of the fine is greater than most fines that were recently issued to other companies. This indicates that the rules that Safecap broke make have been quite serious.

Safecap Investments Ltd is a licensed Cyprus Investment Firm operating in Cyprus. It is licensed by CySEC under authorization number 092/08. It is also licensed in South Africa by the Financial Services Board in that country, under license #43906. Safecap is the owner of several online trading brands including:

  • Markets.com
  • Forexyard
  • Trade.com
  • Finexo
  • TopOption
  • 24winner
  • Optiontime
  • OnlyOption
  • FireOptions

Safecap is owned by TradeFX, which in May 2015 was purchased by Playtech PLC. Playtech is a major player in the online gaming industry and is listed on the London Stock Exchange under symbol PTEC.

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Title: Safecap Investments (Markets.com) Fined €168,000 By CySEC
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