CySEC Initiates Compensation under ICF for Maxigrid Clients
- The brokerage operator lost its license in February.
- The deposits of each client of the broker are insured for up to €20,000.

The Board of the Cyprus Securities Exchange Commission (CySEC) announced on Tuesday the initiation of the compensation payment process to the clients of Maxigrid Ltd under the Investors Compensation Fund (ICF).
Though the decision was taken on 28 March, it was announced publicly quite recently.
Maxigrid operates multiple forex and contracts for differences (CFDs) trading brands: Dualix and AGM Markets. It ran the operations from its Cypriot base after receiving a Cyprus Investment Firm (CIF) license in 2011.
However, the license of Maxigrid was withdrawn by the Cypriot regulator last February. The broker violated multiple mandatory compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
Read this Term rules that led to the cancellation of its license.
Even before, the license of the broker was suspended for violations.
The Compensation Fund
Similar to other European financial market regulators, CySEC provides protection to the individual investor’s deposits under the ICF scheme. The compensation scheme provides protection of up to €20,000, which provides protection in case the financial services company becomes bankrupt or is unable to return customer deposits due to financial constraints.
The process of the clients' claims is not clear as of yet since the ICF will now have to initiate its proceedings.
Meanwhile, the brands of Maxigrid have stopped their services.
“Maxigrid Limited’s license is suspended. The Company is adopting a set of improvements [that] are required by its regulator,” a notice on Dualix states. “Please note that the Company, for a period of one month, will not provide/carry out investment services/activities and/or enter into any business transaction with any person nor will it accept any new clients.”
The Board of the Cyprus Securities Exchange Commission (CySEC) announced on Tuesday the initiation of the compensation payment process to the clients of Maxigrid Ltd under the Investors Compensation Fund (ICF).
Though the decision was taken on 28 March, it was announced publicly quite recently.
Maxigrid operates multiple forex and contracts for differences (CFDs) trading brands: Dualix and AGM Markets. It ran the operations from its Cypriot base after receiving a Cyprus Investment Firm (CIF) license in 2011.
However, the license of Maxigrid was withdrawn by the Cypriot regulator last February. The broker violated multiple mandatory compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
Read this Term rules that led to the cancellation of its license.
Even before, the license of the broker was suspended for violations.
The Compensation Fund
Similar to other European financial market regulators, CySEC provides protection to the individual investor’s deposits under the ICF scheme. The compensation scheme provides protection of up to €20,000, which provides protection in case the financial services company becomes bankrupt or is unable to return customer deposits due to financial constraints.
The process of the clients' claims is not clear as of yet since the ICF will now have to initiate its proceedings.
Meanwhile, the brands of Maxigrid have stopped their services.
“Maxigrid Limited’s license is suspended. The Company is adopting a set of improvements [that] are required by its regulator,” a notice on Dualix states. “Please note that the Company, for a period of one month, will not provide/carry out investment services/activities and/or enter into any business transaction with any person nor will it accept any new clients.”