CySEC Further Extends CIF Licence Suspension of Best Choice FBC
CySEC further extends the licence suspension of Best Choice FBC which operates the online brokerage BCFX.com.
Finance Magnates Staff
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Regulation
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Retail FX )
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2016-12-20T11:36:29+00:00
2016-12-20T11:36:29+00:00
The Cyprus Securities and Exchange Commission (CySEC) today announced that it has extended the suspension of the Cypriot Investment Firm (CIF) licence of Best Choice FBC Ltd and initiated proceedings for its withdrawal.
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Best Choice FBC, an online forex brokerage which operates under the URL https://bcfxbroker.com/, initally had its licence suspended back in August after violating certain aspects of the law relating to the protection of clients’ funds.
Violations
CySEC reached its decision as the alleged violations were deemed to endanger the company’s clients’ interests and the smooth operation of the capital market.
In September, CySEC announced that it had extended the suspension due to continuing suspicions of possible non-compliance.
Best Choice FBC’s CIF authorisation will now remain suspended until CySEC decides whether or not to withdraw the relevant authorisation.
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Conditions
While the suspension of the authorisation is in force, the brokerage cannot provide any services or enter into a business relationship with any person and take on any new clients.
In addition, it cannot receive, transmit and execute any orders from clients for buying financial instruments or provide any investment services in or outside Cyprus.
The brokerage is also not permitted to advertise itself as an investment services provider and have any relating advertisements and is required to mentioned on all of its websites that its CIF licence has been suspended.
Accordingly, a glance at Best Choice FBC’s website continues to reveal the message “Important Announcement: Our Licence Has Been Suspended”.
Finally, the brokerage must, in line with clients’ wishes, close any open positions in relation to clients’ contracts on or before their maturity date and return to existing clients all funds and profits earned.
As far as opening a new account is concerned, this function is now disabled on BCFX’s website and it is also evident that the brokerage has vacated its existing premises.
Did clients get their monies back? I guess the FPA will have to take it from here if they have not already.
But a more important question is why is CySec not cancel the license? Why only extend the suspension?
@Jon Grah CySEC works on a risk based approach. It was obvious from the beginning in August when they first suspended their license that their license will be withdrawn. However, most companies are foreign owned, and thus controlled, if CySEC withdraws the license immediately owners may just leave cyprus and disappear and thus clients will never see their monies back. In the case above, CySEC always keeps an open door that you “might” get the license back if you comply with the conditions, and one of the conditions is to honor withdrawals. After the suspension there will happen a run… Read more »
Then CySec should (like US CFTC and AU ASIC) have certain employees designated within Cyprus with signatory authority to process withdrawals or other significant tasks related to the brokerage that can be held accountable (e.g. arrested, fined, etc.) for misconduct. Obviously no one would put their neck out on the line like that unless they were confident the company books were legit. CySec having no restitutive powers is a joke. But at least have the power to hold someone accountable in country is a reasonable expectation. Without real enforcement powers or consequences, the illegitimate broker staff just run off with… Read more »
I had more than 10k Eur when licence have been suspended, I had to wait 3 weeks but finally they’ve sent me everything, the same with other people. Not heard of people that didn’t have funds back … I just ask myself why IronFx had a very different treatment… Ironfx scam the deposit of people, never heard that BestChoice made something like that……