News Nuggets | 5 April: BUS Offers Interest; FINRA Warns against Phishing

CySEC Imposes Restrictions on Ayers Alliance

The Cyprus Securities and Exchange Commission (CySEC) has imposed restrictions on Ayers Alliance Finance Group Limited, a Cyprus Investment Firm (CIF) that offers asset management and structured investment products and services. The Cypriot financial watchdog announced on Wednesday that the CIF has failed to comply at all times with the authorization conditions stated in the country’s investment services law.

As a result, CySEC has ordered Ayers Alliance to cease operations within six months of the practice of cooperating “with third parties who are not established in a jurisdiction where the safekeeping of financial instruments for the account of another person is subject to specific regulation and supervision,” among other practices.

The regulator in April last year sanctioned the CIF for breaking mandatory staffing requirements for its risk management department. The Cypriot watchdog at the time ordered Ayers Alliance to cease using personnel without the skills, knowledge and expertise required for the performance of the responsibilities of the Head of the Risk Management Department.

GTN Acquires FINRA License

GTN, a leading fintech company with a long history of making investment and trading accessible to all, has recently achieved an important milestone in its expansion strategy by obtaining a Financial Industry Regulatory Authority (FINRA) license. This significant step allows GTN to offer trading and investment solutions to a wider variety of clients, including brokers, banks, asset managers, and fintech firms.

The newly acquired FINRA license enables GTN's clients to take advantage of direct market access and investment opportunities easily. This achievement is crucial for GTN in realizing its goal of democratizing access to investment and trading opportunities for everyone, regardless of location. GTN's innovative B2B and B2B2C business model focuses on collaboration with its clients, providing the necessary resources and support to help them succeed in the rapidly evolving, technology-driven industry.

Equinix Expands in Montreal

Equinix, Inc. (Nasdaq: EQIX), the digital infrastructure company, has announced plans to establish a new state-of-the-art International Business Exchange (IBX) data center in Montreal. The facility is scheduled to open in the latter half of 2023. Equinix wants to use the fact, that Montreal solidifies its status as a global leader in industries, such as Visual Effects (VFX), gaming, financial services, and aerospace.

The new data center, dubbed MT2, will enhance Equinix's presence in Montreal and further the company's commitment to delivering the full value of Platform Equinix® and its suite of solutions to Canadian businesses. Montreal serves as a crucial economic center both in Canada and worldwide, and it boasts a vibrant innovation hub with one of the country's largest concentrations of technology workforces.

From XTB and Infinox to Exinity

Ex-Infinox Head of Business Development and Partner, Tiago da Costa Cardoso, announced on Wednesday that he is moving to Exinity, where he will serve as the Senior Vice President in the Strategic Business Development department.

“I’m happy to announce that I started my new role as Senior Vice President – Strategic Business Development at Exinity. Under the motto 'Freedom to Succeed', our goal is to consolidate our position as one of the biggest brokers in the world,” da Costa Cardoso wrote on his LinkedIn page.

Before joining Infinox and Exinity, he worked for seven years at X-Trade Brokers in Lisboa as an Account Manager and as a Team Leader.

FCA Starts Criminal Proceedings against Four Individuals

The FCA has initiated criminal proceedings against four individuals for alleged conspiracy to commit fraud and engaging in regulated activity without authorization. Additionally, two of these individuals face charges for money laundering, while one is charged with possessing false identity documents and offenses related to perverting the course of justice.

The FCA claims that between February 2017 and June 2019, Raymondip Bedi, Patrick Mavanga, Nicholas Harper, and Rowena Bedi allegedly defrauded investors of around £1.4 million through fraudulent investment schemes. The schemes in question were associated with Astaria Group LLP, CCX Capital and unauthorized clones of Ian Buckley Financial Services and Capital Partner(s) Group.

BUX Offers 2.01% Interest on Cash

Amsterdam-based BUX is now offering a 2.01 percent interest to the uninvested cash deposits of all BUX Zero customers. The move came following the recent ECB rate hikes.

Though there is a time restriction to the interest rate, it will be offered only to cash balances up to €25,000.

"With increasing interest rates, people are more and more looking to earn a return on their cash. Whereas no other Dutch brokerage firm offers such an attractive interest rate, at BUX we believe in building up wealth for the future in any way," said the CEO of BUX, Yorick Naeff.

Swiss Regulator Wants More Power

Switzerland’s financial regulator FINMA seeks authority over the country's financial services industry, as it wants to penalise, name and shame banks that break the rules. This came following tension with Credit Suisse, which led to its hasty acquisition by rival UBS.

"Our instruments hit their limits in extreme cases as seen in the case of Credit Suisse," Marlene Amstad, FINMA's President, told journalists. "FINMA has no power to fine... It’s an exception when compared with other regulators."

She is seeking a change in the closed-door investigation and actions of regulators against banks in case of any non-compliance for maintaining stability. However, if the Swiss government is thinking along the same line, it is not known.

FINRA Warns against Phishing

United States' FINRA issued a warning against rampant phishing attempts, targeting member firms. Impersonators of FINRA are sending emails to FINRA members, luring them to click on phishing links.

"This notification is to warn member firms of an ongoing phishing campaign that involves fraudulent emails purporting to be from FINRA and using the domain names '@finrarps.org' or '@finrarps.net'. The domains of 'finrarps.org' and 'finrarps.net' are not connected to FINRA, and firms should delete all emails originating from these domains," FINRA stated.

"Member firms should be aware that they may receive similar phishing emails from other domain names in addition to those identified in this Alert."

Eventus Onboards Regulatory Director

Eventus, a provider of multi-asset class trade surveillance and market risk solutions, announced the appointment of Jonathan Dixon as the Director of Regulatory Affairs, EMEA & MENA. He brings 18 years of experience to the role and most recently served as Kraken’s Head of Trade Surveillance.

Based in London, his new role will require him to work closely with clients and industry bodies to improve regulatory effectiveness.

PostFinance Taps Sygnum Bank for Crypto Offerings

Swiss lender PostFinance has partnered with Sygnum, a digital asset bank, for offering its customers a range of regulated cryptocurrency services. These will be provided via Sygnum's B2B banking platform.

"Digital assets have become an integral part of the financial world, and our customers want access to this market at PostFinance, their trusted principal bank," said Philipp Merkt, the Chief Investment Officer of PostFinance.

Sygnum's Chief B2B Officer, Fritz Jost, added: "Our all-in-one B2B banking platform enables our fifteen-plus B2B partner banks to expand their range of regulated digital asset services at scale and speed. We are pleased to empower PostFinance to deliver institutional-grade digital asset services to their customers."