CySEC Fines Lydya Financial Again Over Reporting Failures

The Cyprus Securities and Exchange Commission (CySEC) has fined Lydya Financial Ltd for failing to submit mandatory data under the regulator's risk-based supervision framework, marking the firm's second such penalty this year.

According to CySEC's decision published on October 24, Lydya was fined €850 for not submitting its 2024 RBSF-CIF form on time. The document is a key component of CySEC's monitoring system, providing detailed financial, operational, and client data that help the regulator assess each firm's risk profile.

Just two months earlier, CySEC fined the company €100 for missing its first-quarter reporting deadline. Although both fines are relatively small, the repeated violations signal potential gaps in Lydya's compliance infrastructure and internal reporting controls.

Lydya Financial, which operates the trading brands Forex24 and Forex24 Global, has held a CySEC license since 2016. However, its Legal Entity Identifier (LEI) currently shows as lapsed—a sign that it may also be behind on broader regulatory upkeep.

Under CySEC's rules, regulated investment firms are required to maintain accurate and timely submissions through the Transaction Reporting System. Failure to do so not only attracts monetary penalties but can also trigger a deeper compliance review or on-site inspection.

A compliance consultant in Nicosia noted that CySEC's approach is intended to "enforce procedural discipline rather than collect fines," reflecting the regulator's increased focus on operational transparency and accountability in 2025.

CySEC has been stepping up enforcement against repeated late filers this year, warning that habitual offenders could face suspension or public naming. For Lydya, further lapses could put its license at risk, especially as the regulator tightens its supervision of high-risk retail brokers operating across the EU under MiFID II.