CySEC Fines Investago and Zetano Operator Wonderinterest €100,000 for Regulatory Breaches

The Cyprus Securities and Exchange Commission (CySEC) has imposed an administrative fine of €100,000 on Wonderinterest Trading Ltd, a Cyprus Investment Firm (CIF), for multiple regulatory violations identified during the period 2022–2024.

Wonderinterest Trading Ltd operates several CFD brokerage brands, including Investago and Zetano, which mainly target Eastern European markets such as Slovakia, Czechia, and Hungary.

According to CySEC, the breaches relate to failures in governance, product governance, client protection, and marketing communications, in violation of the Investment Services and Activities and Regulated Markets Law of 2017 and Delegated Regulation (EU) 2017/565.

CySEC Enforcement Action Against Wonderinterest Trading Ltd

In its decision, CySEC stated that Wonderinterest Trading Ltd failed to comply with key regulatory obligations applicable to licensed investment firms. The regulator emphasized that the violations undermined investor protection and the integrity of the investment services framework.

CySECs findings focused on inadequate internal controls, deficiencies in target market identification, and misleading client communications, all of which are critical compliance areas for CFD brokers operating under EU regulation.

Fine Breakdown: How the €100,000 Penalty Was Calculated

€50,000 Fine – Breach of Authorisation Conditions

CySEC imposed a €50,000 fine for violations of Section 22(1) of the Law, citing failures to comply with authorization conditions, including:

• Section 17(2) of the Law (Article 22(2) of Delegated Regulation (EU) 2017/565):

  The company did not establish adequate policies and procedures to ensure continuous compliance with regulatory obligations.

• Section 17(3)(c) of the Law (Directive on Safeguarding of Client Assets and Product Governance):

  Wonderinterest failed to define a clear target market for each financial instrument and did not properly assess risks relevant to end clients.

€30,000 Fine – Failure to Act in Clients Best Interests

A further €30,000 fine was imposed for breach of Section 25(1) of the Law, as CySEC determined that the company did not act honestly, fairly, and professionally when providing investment services, contrary to the best interests of its clients.

€20,000 Fine – Misleading Marketing and Client Information

CySEC also imposed a €20,000 fine for violations of Section 25(3)(a) of the Law, as specified in Articles 44(1), 44(2)(b), and 44(2)(e) of Delegated Regulation (EU) 2017/565.

The regulator found that marketing communications and other information provided to clients or potential clients were not always fair, clear, or non-misleading, breaching transparency requirements.

Why CySEC Imposed the €100,000 Fine

In determining the total administrative penalty, CySEC said it considered several key factors, including:

• The importance of full regulatory compliance by all CySEC-regulated investment firms.
• The need for effective internal governance, policies, and procedures within CIFs.
• The obligation to protect retail investors, particularly in high-risk products such as CFDs.
• The seriousness of failures to act honestly, fairly, and professionally can erode investor confidence.
• The requirement to ensure financial instruments are offered only to an appropriate target market, following adequate risk assessments.
• CySECs conclusion that, during the relevant period, the company did not adequately safeguard client interests.

Impact on Investago and Zetano Clients

While CySEC did not announce additional restrictions on the Investago or Zetano brands, the enforcement action highlights heightened regulatory scrutiny of CFD brokers operating across multiple European markets. Clients are reminded to carefully review broker regulations, disclosures, and risk warnings before engaging in CFD trading.

Regulatory Trend: CySEC Tightens Oversight of CFD Brokers

This case reflects CySECs ongoing efforts to strengthen investor protection, product governance, and marketing transparency within the online trading industry. The regulator has repeatedly signaled that non-compliance with EU rules, particularly in cross-border CFD offerings, will result in financial penalties and enforcement actions.