BroCo's Mauritius FSC license suspended

Six month after licenses of 5 retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term firms were unexpectdely revoked by the Mauritius FSC, with no reason given the FSC has announced that it suspended another forex license this time of BroCo Investments Inc. Again, no reasons were provided.

BroCo is a focus of an ongoing SEC investigation for fraud made by one of its clients in the US. Seeing how Mauritius FSC treated the previously suspended firms I can assume that the suspension will become a revocation soon. It seems Mauritius FSC has made a complete shift in its policy and forex brokers are no longer welcomed on the little African island, which not long ago has launched its own forex exchange.

No comment was received from BroCo until now.

"Public Notice

Notice is hereby given that in accordance with Section 74(6) and Section 27(3) of the Financial Services Act 2007 the following licences issued to BroCo Investments Inc :

(1) Global Business Licence;

(2) Investment Dealer Licence; and

(3) Investment Adviser Licence,

have been suspended with immediate effect.

Pursuant to Section 27(5) of the Act, where a licence is suspended, the licensee shall cease to carry out the activity authorised by the licence, but shall remain subject to the Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term of a licensee and to the directions of the Commission until the suspension of the licence is cancelled. Financial Services Commission, FSC House, 54 Cybercity, Ebene, Mauritius, 7 December 2010"

Regardless of this, there's something that doesn't really add up on FSC's website. When you are at the FSC's homepage (https://www.gov.mu/portal/sites/ncb/fsc/index.html) and click "Revocation of five Global Business licences" you are taken to another website called https://www.ifsbmauritius2009.com/. The website doesn't function and all it does is says this in Russian "Сайт ifsbmauritius2009.com на реконструкции. r01.us" meaning that the site is under construction. Quick Whois inquiry shows that both ifsbmauritius2009.com and r01.us websites are controlled by a person named Vitalij Kora, based in Russia, who is a websites designer and promoter. This just doesn't look good.