The Cypriot financial regulator, CySEC, announced on Thursday about its decision to withdraw the Cyprus Investment Firm (CIF) license of Stocks Forex AF Ltd, the company that operated the Forex4group brand.
The regulatory decision was taken following the request of the company to renounce its CIF license as it has entered liquidation. In a notice published on its website, the company highlights that it has returned all client funds.
“Stocks Forex AF has voluntarily asked for the renunciation of its brokerage license after returning all funds to the clients. The company is currently looking at the liquidation process,” the company website noted.
Stocks Forex AF Ltd received its CIF license in 2015 and was offering forex and CFDs trading services, as well as targeting the Spanish-speaking region.
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The Cyprus Securities and Exchange Commission (CySEC) decided to withdraw the license earlier this month under the Investment Services and Activities and Regulated Markets Law.
CySEC’s Strict Stance
Earlier this week, the Cypriot regulator took back the operational license of troubled Rodeler Ltd, which operated 24Option. Similar to Stocks Forex AF, Rodeler renounced its CIF license, but the company faced severe regulatory backlash across Europe.
Rodeler settled with the Cypriot regulator last year paying a penalty of €280,000 following a temporary suspension of its license for its breaches in compliance in the UK. In addition, the brokerage platform was banned in various European countries.
Meanwhile, CySEC revealed in two consecutive reports that it found several compliance breaches in regulated companies’ compliance, some as severe lapses in mandatory AML/CFT measures. Furthermore, the regulator is imposing fines on many companies for possible compliance violations.