CySEC Sanctions Former Directors of Exelcius Prime Over Governance Failures

The Cyprus Securities and Exchange Commission (CySEC) has announced enforcement actions against several former Executive and Non-Executive Directors of Exelcius Prime Ltd, the Cyprus Investment Firm (CIF) that previously operated the 1Market online trading brand through the websites 1market.eu and 1market.com.

Exelcius Prime‘s CySEC license was suspended in 2022, and in 2024 the regulator imposed a significant administrative fine on the company. Following that sanction, CySEC conducted a further examination focusing on the compliance and governance responsibilities of the company’s Board of Directors during the relevant period.

Directors Found in Breach of the Law

CySEC determined that the Board of Directors, during the period 1 January 2021 to 3 August 2022, acted in violation of Cyprus investment services legislation by failing to ensure effective corporate governance and oversight.

The individuals assessed by CySEC were:

• Andreas Katsantonis, Executive Director (2 February 2016 – 30 November 2022)
• Melina Theodorou, Executive Director (6 May 2020 – 28 June 2022)
• Simon Anthony Fox, Non-Executive Director and Shareholder (26 January 2021 – present)
• Christos Domazos, Independent Non-Executive Director (12 April 2022 – 29 June 2022)
• Marinos Gialeli, Independent Non-Executive Director (20 October 2017 – 1 July 2022)

According to CySEC, the Board failed to:

• Properly oversee the implementation of governance arrangements designed to ensure effective and prudent management, market integrity, and the protection of client interests, as required under Article 10(1)(a) of the Law.
• Monitor and periodically assess the effectiveness of governance arrangements and internal policies related to client services, or take corrective measures to address deficiencies, as required under Article 10(1)(d) of the Law.

Fines and Management Bans Imposed

As a result of these findings, CySEC imposed the following sanctions:

1. Andreas Katsantonis was fined €75,000 and banned for three years from exercising management functions in Cyprus Investment Firms.
2. Melina Theodorou was fined €25,000 and banned for three years from exercising management functions in CIFs.
3. Simon Anthony Fox was fined €25,000 and also banned for three years from exercising management functions in CIFs.

CySEC decided not to impose fines or other measures on Christos Domazos and Marinos Gialeli, citing factors related to their roles and capacity within the company during the relevant period.

Regulatory Message on Board Accountability

The decision underscores CySECs increasing focus on personal accountability at the board level, particularly in cases involving governance failures, client protection risks, and ineffective oversight within licensed investment firms.

The Exelcius Prime case follows a broader trend among European regulators to hold not only firms, but also individual directors, responsible for failures in governance frameworks and regulatory compliance.