The Cyprus Securities and Exchange Commission (CySEC) has announced a €150,000 settlement with L.F. Investment Ltd, the CIF behind brokerage brand Purple Trading, for multiple possible regulatory violations-including conflicts of interest and issues around the marketing of CFDs to retail clients.
The violations, which span from July 2021 to October 2023, include:
- Failing to meet organizational requirements set under Cyprus investment law
- Inadequate handling of conflicts of interest
- Misleading or insufficient client communications
- Breaches in the appointment of tied agents
- Non-compliance with ESMA’s product intervention rules around the distribution and sale of CFDs to retail clients
The fine has already been paid in full and, as CySEC clarified, the settlement funds go to the Republic of Cyprus Treasury, not the regulator itself.
While Purple Trading continues to operate under CySEC regulation, the case adds to a growing list of CFD-related enforcement actions in Cyprus, many of which serve as cautionary tales for firms walking the tightrope between aggressive growth and compliance.
