Finance Magnates has reported that the Cyprus CySEC partially suspends the license of the regulated investment firm (CIF) Indication Investments Ltd. The broker regulated with No. 164/12 is doing business as Libertex with the approved domain www.libertex.com. In its board decision, CySEC says that it seems that Libertex does not act honestly, fairly, and professionally in dealing with its clients. In addition, Libertex also seems to violate various compliance guidelines. This is not the first time Libertex has had such issues with CySEC.
Back in May 2020, CySEC announced a settlement with Libertex a/k/a Indication Investments. The CIF had to pay €160,000 for possible violation of compliance guidelines and financial laws. The settlement followed an investigation by CySEC.
Such payments are nice for the Treasury of the Cyprus Republic, which receives all penalties and settlement payments from CySEC-regulated CIFs. These do not represent income for CySEC, which is perhaps why there are hardly any penalties or settlement payments given the countless and systematic violations of compliance guidelines and financial laws. For Cyprus, the CIFs are a vital source of revenue. Therefore, they enjoy widespread immunity from penalties, much to the displeasure of other EU regulators and to the detriment of EU consumers. Thanks to the relaxed acting CySEC, Cyprus is famous for its scam tourism.
