The Cyprus Securities and Exchange Commission (CySEC) imposed administrative fines totaling €210,000 on current and former members of the Board of Directors of Maxigrid, along with a ban against them exercising management functions in Cyprus Investment Firms (CIFs) of up to five years.
According to a CySEC’s statement, following an investigation into Maxigrid’s non-compliance with provisions of the Investment Services and Activities and Regulated Markets Law, CySEC found that Maxigrid’s Board of Directors failed to define and take responsibility for the implementation of arrangements that ensure the effective and prudent management of the Company, in a way that promoted the integrity of the market and the interest of its clients.
“Specifically, during the period between 4th September 2020 and October 2021, the principle of governance arrangements, which is set out in section 10(1)(b)(ii) of the Law, was not applied”, CySEC announced.
Shareholder and ex Non-Executive President of the Board, Roy Almagor received an administrative fine of €200,000 and a ban for a period of five years from exercising management functions in CIFs. Executive Director of the Company Jekaterina Pedosa received an administrative fine of €10.000 and a ban for a period of five years from exercising management functions in CIFs.
Also, Executive Director of the Company Katerina Papanicolaou and ex Executive Director of the Company Nikolai Monogarov received a ban for a period of two years from exercising management functions in CIFs.
In determining the administrative fine, CySEC, according to its statement, took into account, inter alia, the seriousness attributed by Cyprus’ lawmakers to such infringements. CySEC is clear that all persons who assume administrative duties in a CIF are required to take responsibility for maintaining its smooth operation and to ensure the interests of its customers, and thatdirectors of a CIF must contribute to promote market integrity.
CySEC also notes that no administrative fines or other measures were imposed on the following former non-executive Directors of the Company, Alexis Zampas, Pavlos Iosifides and Ioannis Chasikos, taking into account various factors relating to their capacity in the Company.
Source: Cyprus News Agency