CySEC Fines Wonderinterest Trading Ltd €100,000

CySEC fines CIF license holder Wonderinterest Trading Ltd €100,000 for multiple violations of The Investment Services and Activities and Regulated Markets Law of 2017 during the period 2022-2024. According to CySEC, the company, which operates several CFD brokerage brands, including Investago and Zetan,o targeting markets in Eastern Europe, such as Slovakia, Czechia, and Hungary, failed to comply with critical regulatory requirements, leading to the administrative penalty. 

Specifically, CySEC imposed a fine of €50,000 for violating section 22(1) of the Law, noting that Wonderinterest Trading Ltd did not consistently adhere to authorization conditions. The regulator highlighted that the company failed to establish adequate policies and procedures to ensure compliance under section 17(2) of the Law, as specified in Article 22(2) of Delegated Regulation (EU) 2017/565. Furthermore, the company did not identify target markets for each financial instrument or assess relevant risks, violating section 17(3)(c) and paragraph 11(9) of the Directive for Safeguarding Client Assets, Product Governance Obligations, and Inducement. 

CySEC Fines Wonderinterest Trading Ltd €100,000

In addition, CySEC fined the company €30,000 for breaching section 25(1) of the Law, stating that Wonderinterest Trading Ltd did not act honestly, fairly, and professionally in providing investment services to its clients, failing to uphold their best interests. A further €20,000 fine was imposed for violating section 25(3)(a) of the Law, as the company did not ensure that all information, including marketing communications, was fair, clear, and not misleading, as outlined in Articles 44(1), 44(2)(b), and 44(2)(e) of Delegated Regulation (EU) 2017/565. 

CySEC explained that in determining the total administrative fine, it considered the importance of full compliance with the Law and Delegated Regulation (EU) 2017/565. The regulator emphasized the need for CIFs to implement robust policies and procedures, protect investment clients, and distribute financial instruments appropriately to the identified target market. “The seriousness attributed to the obligation of CIFs to act fairly, with honesty and professionalism, is a measure to strengthen investor confidence in the market,” CySEC added.

Furthermore, the regulator noted that Wonderinterest Trading Ltd, at the material time, failed to ensure the protection of its clients’ interests, which contributed significantly to the final fine imposed. This enforcement action underscores CySEC’s ongoing commitment to maintaining high standards in the financial services sector and protecting investors across its jurisdiction.

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