CySEC Withdrew License of Broker Operator Hoch Capital

by Arnab Shome
  • It operates brands like itrader and tradeATF.
  • It settled with CySEC earlier for multiple possible instances of non-compliance.
CySEC

The Cyprus Securities and Exchange Commission (CySEC ) announced on Friday the withdrawal of the regulatory license of Hoch Capital Ltd, which operates multiple broker brands.

The regulatory decision for the license withdrawal was taken on 28 March 2022. It further added that it was Hoch Capital’s decision to renounce its Cyprus Invest Firm (CIF) license.

Hoch Capital operates trading brands like itrader.com and tradeATF.com. Their offerings include forex and contracts for differences (CFDs) of the popular asset classes.

A Controversial Broker

But, Hoch Capital remains controversial for multiple allegations of non-compliance with mandatory regulatory requirements. The company settled with CySEC in December 2020, paying a fine of €260,000, for multiple possible compliance violations, including conflicts of interest and information provided to clients.

In addition, the Cypriot supervisor briefly suspended the license of Hoch Capital and a few other brokerage operators in June 2020 as they were caught up in promoting their products in the United Kingdom. The FCA flagged them for using fake celebrity endorsements for their products on social media.

Moreover, Hoch faced regulatory troubles in Italy. Additionally, the local regulator, CONSOB, banned its brokerage brand, tradeatf.com, for non-compliance and even blocked its access in the country.

Cyprus is one of the favorite jurisdictions for financial services firms to establish their bases. The low regulatory entry barrier of the island makes it a perfect jurisdiction for Europe-bound companies to make it their base.

But now, CySEC has become extremely vigilant and is actively flagging and taking action against any violations. Earlier this year, the regulator withdrew the CIF licenses of Maxigrid and PMT Matrix Capital as well as fined a few other companies.

The Cypriot supervisor even issued a warning to all regulated firms against the attempts of using their platforms to circumvent sanctions by Russian individuals and entities.

The Cyprus Securities and Exchange Commission (CySEC ) announced on Friday the withdrawal of the regulatory license of Hoch Capital Ltd, which operates multiple broker brands.

The regulatory decision for the license withdrawal was taken on 28 March 2022. It further added that it was Hoch Capital’s decision to renounce its Cyprus Invest Firm (CIF) license.

Hoch Capital operates trading brands like itrader.com and tradeATF.com. Their offerings include forex and contracts for differences (CFDs) of the popular asset classes.

A Controversial Broker

But, Hoch Capital remains controversial for multiple allegations of non-compliance with mandatory regulatory requirements. The company settled with CySEC in December 2020, paying a fine of €260,000, for multiple possible compliance violations, including conflicts of interest and information provided to clients.

In addition, the Cypriot supervisor briefly suspended the license of Hoch Capital and a few other brokerage operators in June 2020 as they were caught up in promoting their products in the United Kingdom. The FCA flagged them for using fake celebrity endorsements for their products on social media.

Moreover, Hoch faced regulatory troubles in Italy. Additionally, the local regulator, CONSOB, banned its brokerage brand, tradeatf.com, for non-compliance and even blocked its access in the country.

Cyprus is one of the favorite jurisdictions for financial services firms to establish their bases. The low regulatory entry barrier of the island makes it a perfect jurisdiction for Europe-bound companies to make it their base.

But now, CySEC has become extremely vigilant and is actively flagging and taking action against any violations. Earlier this year, the regulator withdrew the CIF licenses of Maxigrid and PMT Matrix Capital as well as fined a few other companies.

The Cypriot supervisor even issued a warning to all regulated firms against the attempts of using their platforms to circumvent sanctions by Russian individuals and entities.

About the Author: Arnab Shome
Arnab Shome
  • 6227 Articles
  • 79 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.
  • 6227 Articles
  • 79 Followers

More from the Author

Retail FX

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