The Cyprus Securities and Exchange Commission (CySEC) has announced that it has reached a settlement with Cyprus Investment Firm (CIF) license holder EDR Financial Ltd over possible breaches of regulatory requirements under the Investment Services and Activities and Regulated Markets Law of 2017. The matter was with a monetary settlement of €50,000, which CySEC confirmed has received by the company.

EDR Financial Ltd operates the TrioMarkets contracts for difference (CFDs) brokerage brand for European Union clients through its website, triomarkets.eu. According to the regulator, the settlement relates to an investigation examining the firm’s level of compliance during the period between 2020 and 2024. The review focused on whether the company met specific obligations imposed on CIFs operating within the Cypriot and broader EU regulatory framework.

CySEC Reaches €50,000 Settlement With EDR Financial

In particular, CySEC assessed compliance with Article 22(1) of the Law, which requires CIFs to meet the conditions of authorisation on an ongoing basis. This included an examination of organisational requirements set out under Articles 17(4), 17(5)(a), and 17(5)(b), which govern internal structures, operational arrangements, and controls that investment firms must maintain to operate lawfully.

The investigation also covered Article 42 of Regulation (EU) No 600/2014, which addresses product intervention powers exercised by competent authorities. CySEC stated that its assessment focused on paragraph 5 of its Directive DI87-09, concerning restrictions on the marketing, distribution, or sale of CFDs to retail clients. Specifically, this involved evaluating whether the firm ensured compliance with the requirements outlined in paragraphs 4(1)(a) and 4(1)(d) of the directive, which relate to client protection measures applicable to retail CFD trading.

CySEC clarified that the settlement does not constitute an admission of wrongdoing by EDR Financial Ltd. The regulator noted that settlement agreements are a supervisory tool intended to resolve matters efficiently, without the need for prolonged administrative procedures. With the payment of the €50,000 settlement amount, the case is now close.

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