The Cyprus Securities and Exchange Commission (CySEC) announced on Thursday that the multi-asset brokerage firm Lionsman Capital Markets (Cyprus) has renounced its Cyprus Investment Firm (CIF) license, as of June 9, 2017.
Although CySEC didn’t clearly state why Lionsman has decided to say goodbye to its authorization, the Cypriot watchdog has recently seen many regulated brokers opt to voluntary surrender their licenses of their own accord, and not as a result of any regulatory issues.
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In addition, Lionsman should have already settled its problems with CySEC in April 2017 after it was fined €90,000 for violating the Investment Services and Activities and Regulated Markets Law. It is also important to note that fines are usually issued within 6 months of an inspection, so at the point of the fine, the majority of issues should have already been resolved.
A visit to the broker’s website reveals that Lionsman has yet to proceed with changes in its website to remove any references regarding authorization and supervision of the company by CySEC.
As of this date, Lionsman is no longer licensed and regulated by CySEC and cannot provide financial or ancillary services. The regulator gave the broker three months from that date to settle its obligations arising from the investment services that also lapsed, during which time it remains under the Cypriot watchdog’s supervision.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. Furthermore, Lionsman must provide a confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients, according to the same CySEC announcement.