CySEC Bans Broker Directors for 2 Years

CySEC Bans Broker Directors for 2 Years

Time Stamp: April 10, 2024 5:20 AM
CySEC Bans Broker Directors for 2 Years PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The Cyprus
Securities and Exchange Commission (CySEC) has taken decisive action against
Veles International Ltd, a Cyprus Investment Firm (CIF), and its sole direct
shareholder, Dmitry Vitalyevich Bugayenko. The move comes after CySEC
determined that Bugayenko’s influence on the company was detrimental to its “sound
and prudent management.”

In a bid to
rectify the situation, CySEC has announced a series of measures that will come
into effect after a 12-month period. Bugayenko’s voting rights attached to his
shares in Veles International Ltd, which constitute the entirety of the CIF’s
share capital, will be suspended. This means he will not be able to
exercise his rights as a shareholder to vote on company matters for a specified
period.

Furthermore,
Bugayenko, who serves as a Non-Executive Director of Veles International Ltd,
and Ganna Dotsa, an Executive Director, will be prohibited from exercising
management duties on the company’s Board of Directors for two years. This
effectively bans them from making managerial decisions for the company during
this time.

In determining
the type of measures, CySEC considered “the particular circumstances of the CIF, namely
that Ganna Dotsa and Dmitry Bugayenko are the only non-independent directors of
the CIF, following their appointment by the CIF’s direct shareholder.”

In setting
the twelve-month deadline for the measures, CySEC considered the need to
ensure that “the funds and financial instruments are ultimately returned to the
investors.”

CySEC’s Decision Aims to
Protect Investors

The
decision to restrict Bugayenko and Dotsa’s roles and influence within Veles
International Ltd is part of CySEC’s ongoing efforts to ensure the integrity
and stability of the investment services sector in Cyprus. CySEC aims to protect investors and maintain confidence in the market by taking these measures,
prioritizing
cross-border activities and CFD risk mitigation.

In the most
recent regulatory action, the Cypriot market watchdog penalized Notesco Financial Services Ltd. for a possible violation of the Regulation on markets in
financial instruments. The regulated company agreed to a settlement of €100,000 with
the institution.

Simultaneously, CySEC also settled with another locally regulated company, Noteris
Services Ltd. It has agreed to pay €50,000 for potential violations of
investment services laws.

The Cyprus
Securities and Exchange Commission (CySEC) has taken decisive action against
Veles International Ltd, a Cyprus Investment Firm (CIF), and its sole direct
shareholder, Dmitry Vitalyevich Bugayenko. The move comes after CySEC
determined that Bugayenko’s influence on the company was detrimental to its “sound
and prudent management.”

In a bid to
rectify the situation, CySEC has announced a series of measures that will come
into effect after a 12-month period. Bugayenko’s voting rights attached to his
shares in Veles International Ltd, which constitute the entirety of the CIF’s
share capital, will be suspended. This means he will not be able to
exercise his rights as a shareholder to vote on company matters for a specified
period.

Furthermore,
Bugayenko, who serves as a Non-Executive Director of Veles International Ltd,
and Ganna Dotsa, an Executive Director, will be prohibited from exercising
management duties on the company’s Board of Directors for two years. This
effectively bans them from making managerial decisions for the company during
this time.

In determining
the type of measures, CySEC considered “the particular circumstances of the CIF, namely
that Ganna Dotsa and Dmitry Bugayenko are the only non-independent directors of
the CIF, following their appointment by the CIF’s direct shareholder.”

In setting
the twelve-month deadline for the measures, CySEC considered the need to
ensure that “the funds and financial instruments are ultimately returned to the
investors.”

CySEC’s Decision Aims to
Protect Investors

The
decision to restrict Bugayenko and Dotsa’s roles and influence within Veles
International Ltd is part of CySEC’s ongoing efforts to ensure the integrity
and stability of the investment services sector in Cyprus. CySEC aims to protect investors and maintain confidence in the market by taking these measures,
prioritizing
cross-border activities and CFD risk mitigation.

In the most
recent regulatory action, the Cypriot market watchdog penalized Notesco Financial Services Ltd. for a possible violation of the Regulation on markets in
financial instruments. The regulated company agreed to a settlement of €100,000 with
the institution.

Simultaneously, CySEC also settled with another locally regulated company, Noteris
Services Ltd. It has agreed to pay €50,000 for potential violations of
investment services laws.

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