The Cyprus Financial regulator CySEC has just informed the public that it handed down a suspension on the Cyprus Investment Firm (CIF) license of ‘PFX Financial Professionals Ltd’, which operates the brand FXFINPRO Capital, according to a decision being made at the meeting dated November 24, 2016.
The regulatory action comes amidst a sustained crackdown on unregulated and less-than-reputable brokers operating in Cyprus, as the regulator attempts to protect customers from unlicensed brokers that exhibit predatory practices.
FXFINPRO, which holds registration number 193/13, had its licence temporarily suspended after CySEC raised concerns over practices by the company and its executives that the watchdog deemed potentially not compliant with its regulatory obligations. In particular, the broker was initially flagged for non-compliance with section 28(1) of the Law which concerns persons who effectively direct its business, as well as an alleged violation of section 36(1) of the Law (Conduct of business obligations when providing investment services to clients).
CySEC imposed the punitive measures as the aforementioned alleged violations may possibly endanger the company’s clients’ interests or investor interests or generally the regular operation of the capital market.
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PFX Financial is obliged to take action in order to comply with the necessary provisions within one month then apply to reactivate their license once more. But while the license suspension is in force, the company is not permitted to enter into a business relationship with any person, accept any new customer or provide any services.
In addition, FXFINPRO must, if existing clients so wish, close any open positions in relation to clients’ contracts (on time or earlier if the client wishes so). It will be also required to return to existing clients all of their funds and profits earned, if and when the clients so wish.
In the meantime, FXFINPRO has to upload notices regarding the suspension of its license onto all of its sites, though the company has yet to comply.
Finally, if the broker 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 authorisations.