The Cyprus
Securities and Exchange Commission (CySEC) has imposed a €30,000 fine on smart
money management app Plum for multiple violations of “prudential requirements.”
CySEC Cracks Down on Plum
Money over Capital Rules
The
enforcement action stems from several compliance failures identified during
CySEC’s supervision. The regulator found that Plum Money CY Limited, the regulated
company behind the fintech brand, failed to maintain adequate own funds
consisting of required capital tiers as of December 31, 20231.
- Capital
Requirements – The
company was fined €8,000 for not meeting minimum own funds requirements and
another €8,000 for failing to maintain capital levels in accordance with
regulatory thresholds. - Liquidity
Issues – A further
€8,000 penalty was imposed for insufficient liquid assets, as Plum Money did
not maintain the mandatory one-third of its fixed overhead requirement. - Reporting
Breach – The
remaining €6,000 fine related to the company’s failure to submit its annual
report for 2023 by the February 11, 2024 deadline.
Απόφαση ΕΚΚ για επιβολή διοικητικού προστίμου στην εταιρεία PLUM MONEY CY LIMITEDhttps://t.co/pgclt7XzNv
CySEC Decision for the imposition of an administrative fine to company PLUM MONEY CY LIMITEDhttps://t.co/u10lTx5R24— CySEC – Cyprus Securities and Exchange Commission (@CySEC_official) October 25, 2024
The company
should not feel the financial burden of the relatively low fine. Especially, it
just raised £16 million, successfully closing series B funding round.
Plum Secures £16m in
Series B Funding Round
The funding
comes as the fintech firm has seen its assets under management (AUM) grow
significantly, reaching over £1 billion in the past year.
The latest
round was led by iGrow Venture Capital, with additional investments from
existing backers like Venture Friends and Ventura Capital, and a further
contribution from strategic partner Eurobank. The crowdfunding segment, hosted
on Crowdcube, attracted more than 5,500 investors from the UK and EU, making it
one of Crowdcube’s most popular campaigns this year.
In the past
year, Plum expanded its services to several new markets, including Italy,
Portugal, the Netherlands, Greece, and Cyprus. The platform offers automated
saving options for retail clients and commission-free access to invest in a
range of U.S. stocks, with up to 3,000 available for trading, alongside a VISA
debit card for additional financial flexibility.
Additionally,
Plum has partnered with cryptocurrency service provider Bitpanda, allowing
European customers to trade major cryptocurrencies such as Bitcoin (BTC) and
Ethereum (ETH).
The company
also announced the appointment of Erinoula Kyrantonis as Head of Branding and
Communications. Kyrantonis will oversee Plum’s brand strategy and maintain
consistent messaging across channels, bringing experience from her past roles
with brands like Red Bull and Vita Coco.
Plum Money
operates as a smart money management app offering automated savings and
investment services to European customers. The company is regulated in Cyprus
and provides services across the EU under its CySEC license.
The Cyprus
Securities and Exchange Commission (CySEC) has imposed a €30,000 fine on smart
money management app Plum for multiple violations of “prudential requirements.”
CySEC Cracks Down on Plum
Money over Capital Rules
The
enforcement action stems from several compliance failures identified during
CySEC’s supervision. The regulator found that Plum Money CY Limited, the regulated
company behind the fintech brand, failed to maintain adequate own funds
consisting of required capital tiers as of December 31, 20231.
- Capital
Requirements – The
company was fined €8,000 for not meeting minimum own funds requirements and
another €8,000 for failing to maintain capital levels in accordance with
regulatory thresholds. - Liquidity
Issues – A further
€8,000 penalty was imposed for insufficient liquid assets, as Plum Money did
not maintain the mandatory one-third of its fixed overhead requirement. - Reporting
Breach – The
remaining €6,000 fine related to the company’s failure to submit its annual
report for 2023 by the February 11, 2024 deadline.
Απόφαση ΕΚΚ για επιβολή διοικητικού προστίμου στην εταιρεία PLUM MONEY CY LIMITEDhttps://t.co/pgclt7XzNv
CySEC Decision for the imposition of an administrative fine to company PLUM MONEY CY LIMITEDhttps://t.co/u10lTx5R24— CySEC – Cyprus Securities and Exchange Commission (@CySEC_official) October 25, 2024
The company
should not feel the financial burden of the relatively low fine. Especially, it
just raised £16 million, successfully closing series B funding round.
Plum Secures £16m in
Series B Funding Round
The funding
comes as the fintech firm has seen its assets under management (AUM) grow
significantly, reaching over £1 billion in the past year.
The latest
round was led by iGrow Venture Capital, with additional investments from
existing backers like Venture Friends and Ventura Capital, and a further
contribution from strategic partner Eurobank. The crowdfunding segment, hosted
on Crowdcube, attracted more than 5,500 investors from the UK and EU, making it
one of Crowdcube’s most popular campaigns this year.
In the past
year, Plum expanded its services to several new markets, including Italy,
Portugal, the Netherlands, Greece, and Cyprus. The platform offers automated
saving options for retail clients and commission-free access to invest in a
range of U.S. stocks, with up to 3,000 available for trading, alongside a VISA
debit card for additional financial flexibility.
Additionally,
Plum has partnered with cryptocurrency service provider Bitpanda, allowing
European customers to trade major cryptocurrencies such as Bitcoin (BTC) and
Ethereum (ETH).
The company
also announced the appointment of Erinoula Kyrantonis as Head of Branding and
Communications. Kyrantonis will oversee Plum’s brand strategy and maintain
consistent messaging across channels, bringing experience from her past roles
with brands like Red Bull and Vita Coco.
Plum Money
operates as a smart money management app offering automated savings and
investment services to European customers. The company is regulated in Cyprus
and provides services across the EU under its CySEC license.
This post is originally published on FINANCEMAGNATES.
