A touch over a month after the suspension of the license of ACFX, the Cyprus Securities and Exchange Commission has announced that the broker’s license remains suspended. The regulatory watchdog outlined in a statement that the board of the CySEC has convened to extend the suspension until further notice.
Finance Magnates broke the story about Chinese clients of ACFX suffering from withdrawal delays. The event was followed shortly with another report that CySEC had suspended the license of the brokerage and key executives from the firm had left.
With the increasing uncertainty about the matter the likelihood that any clients choose to leave their funds unattended is small.
The difficulty as in other similar cases is how can clients withdraw their deposits and when can they tap the Investor Compensation Fund (ICF) in place for customers of brokerages that go bankrupt.
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CySEC is not highlighting any further developments about the matter, calls made to the premises of ACFX have remained unanswered.
The firm’s troubles started from China and spread to the main operations of ACFX in Europe. The main reasons for the delays which a company representative outlined to Finance Magnates initially was that Chinese clients have managed to somehow do arbitrage on oil contracts.
No confirmation about the truthfulness of this statement has been confirmed by CySEC so far.
Under the current legislative framework clients of ACFX may ask for the retrieval of their funds.