Goldenburg Group Ltd Fined €400,000 for Multiple Violations, Says CySEC

The Cyprus Securities and Exchange Commission (CySEC) fined Goldenburg Group Ltd €400,000 for violating several financial investment regulations, according to a press release issued by the regulator on Tuesday.

CySEC found that Goldenburg failed to establish and implement effective organizational and administrative arrangements to safeguard clients' interests against conflicts of interest.

The company's marketing agent in Slovenia allegedly has a conflict of interest with its local clients. However, Goldenburg Group Ltd failed to adopt appropriate measures to identify and avoid such conflict.

The Commission, therefore, found that the broker did not provide investment services fairly, honestly, and professionally in the best interests of its clients.

The regulator also found that the firm provided misleading information to Slovenian clients and failed to ensure that employees providing investment advice to clients had the relevant knowledge and competence.

In addition, Goldenburg violated the provisions of local law by failing to notify the Slovenian Supervisory Authority in advance before publishing a Key Information Document (KID), which even lacked the necessary regulatory information, on its website.

Goldenburg Group Ltd obtained a Cyprus Investment Firm (CIF) license issued by CySEC on July 14, 2014.