TriumphFX Faces CySEC Crackdown over Shareholder Concerns

<p>The Cyprus
Securities and Exchange Commission (CySEC) has announced enforcement measures
against local investment firm Triumph Int. (Cyprus) Ltd, the operator of the TriumphFX
trading brand, due to concerns over the influence of its sole indirect
shareholder, Chong Chun Hseung.</p><p>CySEC Takes Action against
TriumphFX Operator</p><p>In a
statement released on 21 December, <a href="https://www.financemagnates.com/terms/c/cysec/">CySEC</a> said it has suspended Hseung's voting rights, exercised through the firm's direct shareholder CCH Triumph
Cyprus Trust. The regulator has also prohibited Triumph's executive directors, Christoforos Christoforou and Joel Prakash Benedict, from performing management duties for two years.</p><p>These
actions are linked to TriumphFX and other associated companies being named on
investor alert lists by regulators in Singapore and Malaysia. According to
CySEC, Hseung's influence over Triumph is seen as detrimental to
the sound and prudent management of the firm.</p><p>The
measures will come into effect after two months and remain until Triumph FX and
related entities are removed from the investor alert lists in the foreign
jurisdictions. The company can seek a judicial review of CySEC's
ruling.</p><p>Interestingly,
TriumphFX has been on the Singaporean MAS warning list for over two years,
specifically since 4 August 2021. It was added to the Malaysian regulatory
commission's list even earlier, in 2020.</p><p>CySEC said
its decision aims to address the situation and protect investors. The regulator
has powers under local legislation to take such enforcement actions when it
deems management issues, or shareholder influence are undermining licensed
investment firms.</p><p><a href="https://www.financemagnates.com/forex/cysec-seeks-experts-in-tender-for-regulatory-oversight-of-cypriot-investment-firms/" target="_blank" rel="follow">Also this
week</a>, CySEC informed it is searching for experts specializing in identifying
potential regulatory violations. The regulator has posted a new public tender,
seeking two experts in the undertaking, valued at €240,000.</p><p>Justification for CySEC’s Enforcement
Measures</p><p>Although
the English document from <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">CySEC </a>did not provide additional details, the original
Greek statement outlined the factors considered when determining enforcement actions against Triumph. The
regulator views the influence of shareholders as a potentially serious issue that could undermine
investment firms, and local legislation provides authorities the power to
address such situations.</p><p>Suspending Hseung's voting rights as the ultimate beneficial owner removes his
decision-making ability over the company. Prohibiting the executive directors
he appointed from management duties similarly limits his influence over
operations. CySEC sees
these measures as effectively targeting the problematic shareholder influence while allowing Triumph the time to address the outstanding
investor warnings. </p><p>The
two-month implementation timeframe allows the firm to
seek removal from the Singapore and Malaysia alert lists. In essence, CySEC has deliberately targeted mechanisms through which Hseung
exercises control to incentivize the resolution of these alerts. The agency states that this approach safeguards sound governance and prudent management of the regulated entity.</p>

This article was written by Damian Chmiel at www.financemagnates.com.