The Cyprus Securities and Exchange Commission (CySEC) today made a public notice that Fidelisco Capital Markets Ltd (Fidelisco) has renounced its Cyprus Investment Firm (CIF) license, as of November 8, 2019.
The Cypriot watchdog made it clear that Fidelisco’s surrender of the license is entirely voluntary based on the company’s decision and does not arise as a result of any regulatory action taken by the CySEC.
Although the regulator didn’t clearly state why Fidelisco decided to say goodbye to its CIF authorization, it recently saw many regulated brokers opt to voluntary surrender their license, and not as a result of any regulatory issues. The list included UBFS Invest, Spot Capital Markets Ltd, and Alfa-Forex
The reasons leading up to this decision remain unclear, but CySEC will certainly maintain supervision over the financial service company until it has taken care of its responsibilities under the license.
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In 2015, however, CySEC hit Fidelisco with a €15,000 fine for violations of certain sections of the local Investment Services and Activities and Regulated Markets Law.
Disputes with CySEC since 2014
Operating since 2013, Fidelisco Capital Markets Ltd (Fidelisco) is authorized by several regulators, including CySEC, the UK FCA, and Dutch regulator AFM. At the time, the company has mainly focused on physical terminals offering binary options, including the now-defunct brand 365Trading.com.
In relation to the fine, CySEC stated that since November 2014, the brokerage firm operated a branch (trade room) in the Cypriot city of Paralimni, providing investment services. However, Fidelisco informed the regulator in advance that it plans to establish a representative office only, instead of a branch that requires to disclose required legal information.
CySEC explained the fine was relatively light considering the fact that that the branch in Paralimni terminated its operations and had not previously committed a similar violation.