The Cyprus Financial regulator CySEC on Wednesday handed down a suspension on the Cyprus Investment Firm (CIF) license of Fenix Capital Markets Trading Ltd, according to a decision being made at the regulator’s last meeting.
Fenix, which offers brokerage and investment advice services, had its license temporarily suspended after CySEC raised concerns over practices by the company, as well as its management that the watchdog deemed potentially not compliant with regulatory standards.
In particular, the broker was initially flagged for non-compliance with section 22(1) of the Cypriot regulation “due to the Company’s possible non-compliance at all times with the authorisation condition in section 9(16) (management body) and in section 10 (governance arrangements) of the Law.”
CySEC imposed the punitive measures as the aforementioned violations may endanger the company’s clients’ interests or “the regular operation of the capital market.”
Forex in Russia: 100 Steps BackGo to article >>
Fenix Capital is obliged to take action within 15 days to comply with the necessary provisions 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, Fenix must, if existing clients so wish, close any open positions about clients’ contracts (on time or earlier if the client wishes so). It will also be required to return to existing clients all of their funds and profits earned, if and when the clients so wish.
In the meantime, Fenix 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 authorizations.