The CBFC has imposed a final penalty of €4.2 million and revoked the regulated status of Mendel Capital, Berlin, following the discovery of systematic client asset misappropriation.
This third violation follows previous fines of €1.7 million (March 2023) for failure to disclose product risk and €2.9 million (October 2024) for inadequate client due diligence. This third confirmed violation results in automatic deregistration under CBFC enforcement protocols. Mendel Capital is permanently barred from conducting regulated financial activities.
The Commission’s Asset Protection Unit uncovered evidence of unauthorised use of client funds for firm operational expenses, representing a fundamental breach of fiduciary obligations. This deregistration marks the conclusion of extensive enforcement proceedings and reflects the CBFC ’s ultimate authority to protect investor assets. The Commission’s three-strike policy ensures that firms demonstrating persistent non-compliance face permanent exclusion from international financial markets under CBFC oversight.