The Cypriot financial regulator today said that it has lifted last year’s suspension of the CIF license of Limassol-based FX broker IGM Forex, according to a decision made at a meeting held on October 7, 2019.
IGM Forex, which holds registration number 309/16, had its license temporarily suspended after CySEC raised concerns over practices by the company, as well as its capital adequacy that the watchdog deemed potentially not compliant with regulatory standards.
In particular, the broker was initially flagged for non-compliance with section 28(1) of the Law which requires any CIF to “have its own funds, which are at all times more than or equal to the sum of its capital requirements.” This is in addition to an alleged violation of Article 92(1) of Regulation (EU) 575/2013 (Capital adequacy ratio).
CySEC imposed the punitive measures as the aforementioned violations may endanger the company’s clients’ interests or the regular operation of the capital markets, it said.
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But IGM Forex still offline!!
According to the regulator’s filing, IGM Forex has taken actions to comply with the necessary provisions, but it’s not clear if it then applied to reactivate their license once more.
During this time, the broker was not allowed to provide any services, or enter into a business relationship with any person, or take on any new clients. It was also required to return to existing clients all of their funds and profits earned, if and when the clients so wish.
Around the time of the suspension, IGM Forex’s website (https://www.igmforex.com) went down, in what might have been a complete outage of the whole offering. Despite today’s development, no official statement has been made, and no update is apparent.
In the meantime, IGM Forex had to upload notices regarding the suspension of its license onto all of its sites, and that if it ultimately fails to fix the compliance issues set forth by CySEC, the regulator will trigger the procedure for the revocation of all the operation’s authorizations.