The Cyprus Securities and Exchange commission has issued an announcement inviting clients of the failed brokerage company Falcon Brokers, which was regulated on the island until March 2016, to submit their compensation applications.
Clients of brokerages that are put into liquidation are entitled to compensation of up to €20,000 of their account values. The Investor Compensation Fund (ICF) that has been set up under the local legislation is collecting contributions from regulated brokerages that are used to fund the compensations.
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The CySEC has triggered the application of the ICF disbursement because six months after the revoking of the license of Falcon Brokers, no action has been taken by the firm. The regulator has also failed to get in touch with the brokerage.
The decision was reached at a board meeting of CySEC on the 26th of September 2016. The regulator states that it will publish the decision in three newspapers with national coverage and invitation directed towards the clients of Falcon Brokers to submit their claims to the ICF.
The procedure and the deadlines will be publicized on the website of the Cypriot regulator soon. In the meantime CySEC is inviting all of the clients of Falcon Brokers that are affected to study the appropriate procedures in the ICF Directive.