CySEC Hits Exelcius Prime Executives With Fines and 3-Year Management Bans
What Triggered CySEC’s Enforcement Actions?
CySEC has imposed fines and three-year management bans on three former directors of Exelcius Prime Ltd, concluding a regulatory process that began more than three years ago. The decision, published on December 16, 2025, stems from governance and oversight failures identified between January 2021 and August 2022, a period that ended with the full suspension of Exelcius Prime’s licence.
CySEC said its board determined on July 14, 2025, that Exelcius Prime’s governing body did not meet key obligations set out in the Investment Services and Activities and Regulated Markets Law of 2017. The firm, a Cyprus Investment Firm operating the 1Market, had already faced a licence suspension in 2022 and €740,000 in administrative fines issued in 2024.
According to the regulator, the board failed to overview the firm’s governance arrangements and did not assess whether its policies were adequate for protecting clients or ensuring prudent management. CySEC cited breaches of sections 10(1)(a) and 10(1)(d) of the law, which require directors to ensure effective management and to review governance frameworks on a regular basis.
Investor Takeaway
Who Was Sanctioned and Why?
Three former directors received individual penalties. Andreas Katsantonis, who served as an executive director from 2016 to 2022, was fined €75,000 and barred for three years from holding management functions in . CySEC said he had direct responsibility for ensuring the firm’s governance arrangements were effective during the period under review.
Melina Theodorou, an executive director from May 2020 to June 2022, received a €25,000 fine and a three-year ban. CySEC stated she did not carry out sufficient oversight duties linked to the provision of investment services and internal monitoring.
A €25,000 fine and three-year ban were also issued to Simon Anthony Fox, a non-executive director and shareholder. CySEC noted that Fox’s dual role increased expectations around oversight, adding that board members who also hold equity stakes are expected to take an active approach to governance.
Two former independent non-executive directors, Christos Domazou and Marinos Gialeli, were not sanctioned. CySEC said their roles and capacities during the relevant period did not support imposing fines or bans.
What Compliance Failures Did CySEC Identify?
The regulator pointed to a pattern of missed governance checks and fragile internal supervision. It said Exelcius Prime’s board did not put in place arrangements that could support compliant management of the firm, nor did it monitor whether the firm’s frameworks were functioning as intended. The failures were particularly acute in areas directly affecting clients.
These findings build on earlier enforcement steps. In August 2022, CySEC suspended the firm’s licence later than identifying suspected violations. In 2024, the firm received €740,000 in fines for issues tied to organisational requirements, , client communications, appropriateness assessments, and providing services without the required authorisation. CySEC also cited fragilenesses related to the opening of a foreign branch without proper notification.
The new sanctions extend responsibility to the individuals who held governance roles at the time. The decision aligns with a broader supervisory pattern across Europe, where regulators increasingly address board-level conduct and not just firm-level failures.
Investor Takeaway
What Does This Mean for Cyprus Investment Firms?
Exelcius Prime, had its CySEC license suspended back three years ago, got a €45,000 fine for back in 2024. The operator of the now-defunct also faced a €60,000 penalty for insufficient board commitment, lack of collective experience, and not having at least two qualified individuals directing the business.
A massive penalty of €240,000 was specifically levied for non-compliance with section 17’s organizational requirements. This included not having adequate policies and procedures, failing to review financial instruments for target-market needs, poor client service monitoring, and not providing necessary records to CySEC.
