The Cyprus Securities and Exchange Commission (CySEC) has issued yet another fine to a licensed Cyprus Investment Firm (CIF). This is not the first time CIF Novox Capital Ltd is receiving a fine from CySEC. However, this time, the fine is much smaller than the previous one of €175,000.
Novox Capital Ltd Scam or reliable?
Nevertheless, today, CySEC has informed the public that it has fined Novox Capital Ltd €5,000. The reason being is that the regulated brokerage firm did not inform CySEC about the fact that it has changed its trading name ‘ZoomtraderGlobal’ and its website zoomtraderglobal.com. in time. Reportedly, the CIF did so only after receiving a warning note from the Cypriot regulator.
Novox Capital Ltd is a registered CIF firm in Cyprus. It administers a number of Forex, Binary Options, and CFDs brokerage brands. These include: OptionBit (at website optionbit.eu), ZoomTrader Global (at zoomtraderglobal.com), RoyalPip (at royalpip.com), and NGN Broker (at ngnbroker.com).
Following the CySEC announcement, I have reached out to the Novox Capital Ltd. itself for additional insights into the case. The spokesperson for Novox Capital stated that their CEO is not in the office at the moment. Thus, they did not provide me with an official comment.
CySEC fines CIF Novox Capital Ltd €175,000
The previous fine to Novox Capital Ltd was also issued by CySEC on the 15th of February. AtoZForex reported that the fine totals at €175,000, where €70,000 comes for providing investment advice without authorization. The remaining part of the fine is imposed for the following violations:
- €10,000 for not maintaining proper internal control mechanisms for the approval of advertising materials
- €20,000 for inadequate outsourcing of activities to third parties, such as customer service and call center activities.
- €30,000 for not acting in the best interests of the clients.
- €30,000 for the dissemination of misleading advertising materials by third parties.
- €15,000 for providing information that is not suitable for clients.