LQD Markets Officially No Longer Authorised by Cyprus Watchdog

FX broker LQD Markets Ltd has officially renounced its CySEC authorization to provide investment services and now operates and an

LqdMarkets_113x36The Cyprus Securities and Exchange Commission (CySEC) officially announced today that on July 31, 2014, the FX broker LQD Markets Ltd, renounced its authorization to provide investment services and related activities. The CySEC investment firm’s license number for LQD has therefore expired since the start of August 2014.

Two months ago, LQD Markets informed its clients that the Cypriot entity will stop functioning in July and that they must migrate their accounts to the British Financial Conduct Authority (FCA) regulated entity, LQD Markets UK. As the firm did not explain its decision to abandon CySEC authorization, and an FCA license is more expensive to receive and maintain, one can only speculate the reasons for the move.

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Both licences allow working with clients from across Europe as part of the MiFID “passporting” agreement, but an FCA license carries a bigger brand value which is important for a broker who wishes to focus on attracting English-speaking clients, or with possible M&A action in the UK market. LQD has also run into problems with CySEC in the past when the watchdog fined the firm €80,000 for allegedly offering investment services through third parties without CySEC authorization.

It should be noted by investors, that in accordance with the securities law in Cyprus, LQD Markets Ltd will remain under the supervision of the commission until it settles all its obligations arising from the investment services and activities that happened in the past.

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