The situation around one of the most controversial brokerages this year in Cyprus, ACFX, has continued to remain uncertain in recent months. Following the official announcement by the Cyprus Securities and Exchange Commission (CySEC) that the authorization of the company was withdrawn in April, the clients of the company have been pondering the status of their deposits.
After an initial lapse on the suspension, CySEC issued an announcement which extended the investigation process in May.
Only a week before the withdrawal of its license, ACFX claimed that it is launching an internal investigation into the behavior of some Chinese clients, which the firm suspected of arbitrage. Chinese clients of the company have been widely complaining about the company which has not honored their withdrawal requests.
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The Cypriot regulator has issued a new announcement, which is introducing some clarity into the situation around ACFX. According to a regulatory announcement, the suspension of the license of the brokerage has been extended until further notice. Also, the watchdog is looking into a permanent withdrawal of the authorization of the company.
Client Funds Still Withheld
CySEC now is in the process of deciding whether to permanently withdraw the Cyprus Investment Firm (CIF) license of the brokerage. Clients of the company can be looking into retrieving their funds from the company only after the appointment of a special administrator which will be handling the bankruptcy of the company.
According to the announcement made by CySEC, until the company’s license is still suspended the firm is barred from on boarding new clients as well as from dealing with existing orders and providing financial services.
The limitations for the firm also include the company’s business outside of Cyprus and the European Union. A message is highlighted on the website of the company that states that its license has been suspended.
While the firm is required by law to return client funds to its customers, a number of complaints from users that have accounts with ACFX are claiming that the firm has not been honoring withdrawal requests.