CySEC Withdraws Maxiflex's License for Violating Licensing Conditions

Monday, 06/03/2023 | 16:46 GMT by Solomon Oladipupo
  • Maxiflex allegedly violated rules relating to prevention of use of client funds, others.
  • CySEC suspended Maxiflex's license completely in October 2021.
CySEC

The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) license of forex and CFDs broker Maxiflex Limited for a number of violations that contravene the firm's licensing conditions, including one relating to the prevention of the use of clients’ funds for their own account. The Cypriot securities regulator announced the withdrawal on Monday, noting that its Board reached the decision on December 5th last year.

According to CySEC, Maxiflex also violated other articles of the Investment Services and Activities as well as the Regulated Markets Law (the Law) of 2017.

"CySEC reached to the above decision, due to the Company’s non-compliance with article 22(1) of the Law, as the Company is in violation of article 22(1) of the Law, as to the continued observance of the licensing conditions set out in articles 11(1)(b) and 17(9) of the Law, regarding the suitability of the shareholder and the safeguard of the rights of clients and the prevention of the use of clients’ funds for its own account, respectively, and consequently does not comply anymore with the conditions for granting its authorization,” CySEC explained in a notice.

The withdrawal comes over a year after CySEC suspended Maxiflex's license for allegedly conducting business not stated in its authorization. In addition, the financial markets watchdog at the time alleged that Maxiflex was not complying with sections of the Markets Law related to the suitability of the members of its management body and shareholders as well as those that state organizational requirements.

However, a month later, that is in November 2021, Maxiflex voluntarily renounced its CIF license and terminated all its activities. The company told Finance Magnates at the time that it was “not feasible for us to continue our operations at this point.”

CySEC Issues Directives to Maxiflex

According to CySEC’s public register, Maxiflex Limited, which was previously called Maxiflex Global Investments Corp. Limited, was licensed in November 2014. The company operated approved the domains www.europefx.com, www.europecapitalgroup.com and www.europestocks.com.

With the license now withdrawn, CySEC noted that Maxiflex should immediately remove all reference to its investment services or activities on its websites. Additionally, the brokerage firm is required to delete any reference to its licensing and supervision by CySEC on these sites.

In addition, CySEC asked that Maxiflex investigate and resolve all customer complaints brought before. On top of that, the brokerage company must ensure that it does not provide investment and ancillary services.

Inactive Websites

Meanwhile, in its check of the three previously approved domains of Maxiflex, Finance Magnates found that the domain names of both europstocks.com and europecapitalgroup.com are now up for sale.

On the other hand, www.europefx.com still carries the message that the broker has voluntarily renounced its CIF license and no longer accepts new clients or carries out investment services or activities.

CySEC Withdraws Maxiflex’s License for Using Client Fund for Own Accounts
A screenshot of the Europe FX website taken on March 6th 2023.

The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) license of forex and CFDs broker Maxiflex Limited for a number of violations that contravene the firm's licensing conditions, including one relating to the prevention of the use of clients’ funds for their own account. The Cypriot securities regulator announced the withdrawal on Monday, noting that its Board reached the decision on December 5th last year.

According to CySEC, Maxiflex also violated other articles of the Investment Services and Activities as well as the Regulated Markets Law (the Law) of 2017.

"CySEC reached to the above decision, due to the Company’s non-compliance with article 22(1) of the Law, as the Company is in violation of article 22(1) of the Law, as to the continued observance of the licensing conditions set out in articles 11(1)(b) and 17(9) of the Law, regarding the suitability of the shareholder and the safeguard of the rights of clients and the prevention of the use of clients’ funds for its own account, respectively, and consequently does not comply anymore with the conditions for granting its authorization,” CySEC explained in a notice.

The withdrawal comes over a year after CySEC suspended Maxiflex's license for allegedly conducting business not stated in its authorization. In addition, the financial markets watchdog at the time alleged that Maxiflex was not complying with sections of the Markets Law related to the suitability of the members of its management body and shareholders as well as those that state organizational requirements.

However, a month later, that is in November 2021, Maxiflex voluntarily renounced its CIF license and terminated all its activities. The company told Finance Magnates at the time that it was “not feasible for us to continue our operations at this point.”

CySEC Issues Directives to Maxiflex

According to CySEC’s public register, Maxiflex Limited, which was previously called Maxiflex Global Investments Corp. Limited, was licensed in November 2014. The company operated approved the domains www.europefx.com, www.europecapitalgroup.com and www.europestocks.com.

With the license now withdrawn, CySEC noted that Maxiflex should immediately remove all reference to its investment services or activities on its websites. Additionally, the brokerage firm is required to delete any reference to its licensing and supervision by CySEC on these sites.

In addition, CySEC asked that Maxiflex investigate and resolve all customer complaints brought before. On top of that, the brokerage company must ensure that it does not provide investment and ancillary services.

Inactive Websites

Meanwhile, in its check of the three previously approved domains of Maxiflex, Finance Magnates found that the domain names of both europstocks.com and europecapitalgroup.com are now up for sale.

On the other hand, www.europefx.com still carries the message that the broker has voluntarily renounced its CIF license and no longer accepts new clients or carries out investment services or activities.

CySEC Withdraws Maxiflex’s License for Using Client Fund for Own Accounts
A screenshot of the Europe FX website taken on March 6th 2023.
About the Author: Solomon Oladipupo
Solomon Oladipupo
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About the Author: Solomon Oladipupo
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
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