CySEC Settles with FXVC for €100K, Broker Renounces CIF License

Friday, 06/05/2022 | 12:00 GMT by Arnab Shome
  • The broker possibly violated CySEC regulations.
  • It has stopped offering services under the CIF license from March 2022.
CySEC

The Cyprus Securities and Exchange Commission (CySEC ) has reached a settlement of €100,000 with Finteractive Ltd, the operator of trading brand FXVC, for possible regulatory violations.

Though announced on Friday, the regulatory decision was taken on 14th March 2022.

“A settlement has been reached with the CIF Finteractive Ltd for possible violation of the Investment Services and Activities and Regulated Markets Law of 2017,” the Cypriot regulator stated.

“More specifically, the investigation for which the settlement was reached, covers the period 1.8.2019 to 28.2.2021 and involved assessing the Company’s compliance with article 22(1) of the Law as to the authorization condition laid down in article 17(2) of the Law, regarding the organizational requirements with which a CIF is required to comply.”

Renounced CIF License

The decision came months after the broker suspended all its operations under its Cypriot entity as it decided to renounce its Cyprus Investment Firm (CIF) license.

“We would like to inform you that FXVC had decided under its own initiative to renounce its CIF license with authorization number 238/14 as of 20 January 2022 and following communication with its existing clients, the Company as of 28 February 2022 ceased the offering of investment services,” a notice on FXVC’s website states.

“Clients, who have eligible funds in their account, were notified in order to be refunded the amount of their eligible funds or requested to provide information necessary to proceed with the refund.”

However, it looks like the broker is still offering services under its offshore license obtained from the financial market regulator in Seychelles.

Last year, the United Kingdom’s FCA stopped the services of FXVC within its jurisdiction for using “a variety of inappropriate techniques to promote its services.” The broker was operating in the country under FCA’s Temporary Permission Regime.

The Cyprus Securities and Exchange Commission (CySEC ) has reached a settlement of €100,000 with Finteractive Ltd, the operator of trading brand FXVC, for possible regulatory violations.

Though announced on Friday, the regulatory decision was taken on 14th March 2022.

“A settlement has been reached with the CIF Finteractive Ltd for possible violation of the Investment Services and Activities and Regulated Markets Law of 2017,” the Cypriot regulator stated.

“More specifically, the investigation for which the settlement was reached, covers the period 1.8.2019 to 28.2.2021 and involved assessing the Company’s compliance with article 22(1) of the Law as to the authorization condition laid down in article 17(2) of the Law, regarding the organizational requirements with which a CIF is required to comply.”

Renounced CIF License

The decision came months after the broker suspended all its operations under its Cypriot entity as it decided to renounce its Cyprus Investment Firm (CIF) license.

“We would like to inform you that FXVC had decided under its own initiative to renounce its CIF license with authorization number 238/14 as of 20 January 2022 and following communication with its existing clients, the Company as of 28 February 2022 ceased the offering of investment services,” a notice on FXVC’s website states.

“Clients, who have eligible funds in their account, were notified in order to be refunded the amount of their eligible funds or requested to provide information necessary to proceed with the refund.”

However, it looks like the broker is still offering services under its offshore license obtained from the financial market regulator in Seychelles.

Last year, the United Kingdom’s FCA stopped the services of FXVC within its jurisdiction for using “a variety of inappropriate techniques to promote its services.” The broker was operating in the country under FCA’s Temporary Permission Regime.

About the Author: Arnab Shome
Arnab Shome
  • 6419 Articles
  • 84 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6419 Articles
  • 84 Followers

More from the Author

Retail FX

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}