Just two weeks after CySEC suspended the license of Libertex.com operator Indication Investments, the Cypriot regulator has announced on its website today that it has recalled its decision for the partial suspension of Indication Investments Ltd.
The regulatory decision for the suspension was made on August 3rd for multiple alleged violations of mandatory compliances. CySEC said at the time:
“The [regulatory] decision was reached as the aforementioned alleged violations cause concern and risk relating to the protection of the Company’s clients and/or constitute a threat to the orderly operation and integrity of the market.”
Having been given until September 17th to take the necessary actions and comply with the regulatory requirements, CySEC has announced the Withdrawal and Suspension of Authorisation nearly four weeks ahead of the deadline.
CySEC announced that they had reached their decision, taking into consideration, inter alia, the following:
1. Indication Investments has informed that it has stopped accepting new clients and entering into any business transaction with them.
2. The Company has informed that it has stopped the marketing/advertising of its services to current or potential clients as well as the communication with them for this purpose, either directly or via third parties with whom the Company cooperates for customer support.
3. The Company has informed that it does not receive new deposits from its existing clients unless they explicitly request to do so and at the same time, such deposits are made for the sole purpose of covering the margin requirements of the clients’ open positions.
4. The Company has informed that, during the suspension of its authorisation, it has published on all its websites an announcement relating to the partial suspension of its authorisation and its inability to provide/carry out investment services/activities to new clients.
5. The Company has informed that it has assigned to its internal auditor as well as to an Expert the assessment of its compliance with Article 9 of the Directive 87-05 as well as the assessment of the adequacy and effectiveness of the measures to be taken by the Company, informing the CySEC accordingly before the expiration of the deadline set by the CySEC.
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Moving forward, Indication Investments has assured CySEC that it has taken or intends to take the following measures:
1. The Company has informed that it has removed any reference in relation to a specific discount on commissions from its website, in languages other than English (including Dutch and Spanish).
2. The Company has informed that all its posts, which relate to the Company’s campaign “give away” (‘the Campaign’), have been removed from its website, as well as social media (Facebook, Instagram, Twitter and YouTube).
3. The Company has informed that it has developed a new and adequate/satisfactory marketing policy and procedures, which include a stricter approval process for any advertising material.
4. The Company has informed that it instructed the Expert to monitor the implementation of the compliance program, on a continuous basis, upon the resumption of its activities. It also instructed the Expert to prepare an ad-hoc report in relation to its compliance with the above-mentioned articles.
Having gained a CySEC license in 2012, Libertex is regulated in other jurisdictions and offers services globally. However, today’s news will be a welcome relief for Libertex who recently launched MT5 for its European clients.