The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of Falcon Brokers’ authorization, the authority announced on November 2.
Following this decision, and in accordance with the Investment Service and Activities and Regulated Markets Law, the forex broker cannot continue to offer any investment services
Plus500 Reaffirms its Commitment to Social ResponsibilityGo to article >>
Falcon Must Close All Open Positions
In addition, CySEC said in its statement that the brokerage would have to close all open positions, both its own, and those in clients’ accounts, either on their maturity date or earlier, if a client so wishes. If clients want to take their profits or all their funds, Falcon Brokers is also obliged to release these.
There were suspicions that the broker violated client-fund handling rules
CySEC issued the initial suspension of authorization at the end of September, when it suspected that Falcon Brokers had violated the rules for handling client funds. As Finance Magnates reported then, no details were disclosed about the actual nature of the violation, but the rule in question, Section 18(2)(i), concerns the safeguarding of client funds and their use for the broker’s own account, which is prohibited without the express consent of the client.