The Cyprus Securities and Exchange Commission (CySEC) has issued a €30,000 penalty to Plum, a smart money management app, for various compliance infractions. The fine addresses multiple failures in maintaining required capital and liquidity standards and delays in filing regulatory reports.
The investigation by CySEC revealed that Plum Money CY Limited, the entity operating Plum under CySEC regulation, did not meet the necessary capital levels as of December 31, 2023. Specifically:
- Capital Shortfall: CySEC fined Plum €8,000 for failing to meet minimum capital requirements and an additional €8,000 for not maintaining regulatory capital thresholds.
- Liquidity Deficiency: Another €8,000 was imposed due to insufficient liquid assets, as Plum did not keep the required one-third of its fixed overheads in reserve.
- Reporting Delay: The remaining €6,000 penalty stems from Plum’s failure to submit its annual report for 2023 by the February 11, 2024 deadline.
While the fine may not significantly impact Plum’s finances, given the company’s recent successful fundraising, it highlights CySEC’s scrutiny over regulated entities.
Plum Raises £16 Million in Series B Funding Round
In a positive development, Plum recently secured £16 million in a Series B funding round led by iGrow Venture Capital, with contributions from Venture Friends, Ventura Capital, and Eurobank. Hosted on Crowdcube, the campaign attracted over 5,500 investors, pushing Plum’s assets under management (AUM) past £1 billion.
Over the past year, Plum has expanded into new markets, including Italy, Portugal, the Netherlands, Greece, and Cyprus. The platform provides automated savings tools and commission-free access to U.S. stocks, with a selection of 3,000 options available for trading, as well as a VISA debit card for enhanced user flexibility.
Additionally, a partnership with cryptocurrency provider Bitpanda enables European users to trade major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Plum also recently appointed Erinoula Kyrantonis as Head of Branding and Communications to strengthen its brand strategy. Kyrantonis brings experience from her work with Red Bull and Vita Coco.
Plum operates under CySEC’s regulatory oversight and offers its savings and investment services across the EU.
