Colmex Pro Settles with CySEC for €200,000 Over Compliance Issues

Colmex Pro, a Cyprus-based brokerage, has settled with the Cyprus Securities and Exchange Commission (CySEC) for €200,000 after a two-year investigation into possible regulatory lapses, the authority announced Tuesday.

Nicos Vassiliou, the firms CEO, told Finance Magnates the deal “does not constitute an admission of any wrongdoing” and ties to a “historical compliance review” of past activities.

Regulatory Scrutiny Details

CySECs review spanned January 2021 to February 2023, flagging potential issues in:

• CIF authorization standards
• Conflict of interest management
• Marketing of CFDs to retail clients
• Client information transparency
• Best execution practices

These findings relate only to Colmex Pros Cyprus branch. The firm also operates in Israel and South Africa under separate entities.

CEOs Compliance Commitment

Vassiliou stressed, “We‘ve implemented all required compliance enhancements and remain committed to the highest conduct standards. This settlement concludes a multi-year regulatory process.” He affirmed the firm’s focus on aligning with regulatory expectations.

The €200,000 has been fully paid to the Republic of Cyprus‘s Treasury, not CySEC’s budget. The case involved possible breaches of Cypruss 2017 Investment Services Law and EU Regulation 600/2014, following a thorough supervisory check.

Regulatory History Context

Vassiliou, who became CEO in late 2024, previously worked at CySEC from 2016 to 2020 as a Market Surveillance Officer. His experience likely helped navigate this resolution.

This marks Colmex Pros third CySEC settlement. In 2019, the firm paid €50,000 for compliance issues. A 2016 fine of €100,000 addressed weak client suitability assessments, unclear website information, and operational risks. The 2016 penalty included:

• €40,000 for inadequate client evaluation policies
• €30,000 for transparency failures
• €30,000 for risk management gaps

Vassiliou views these settlements as part of adapting to stricter standards, not persistent issues. He insists Colmex Pro now meets all regulatory requirements fully.

Founded in 2010 in Limassol, Colmex Pro offers trading services across various assets, regulated by CySEC. The firm‘s latest steps signal a renewed push for compliance and client trust in Cyprus’s financial sector.