Following a decision that the regulator made on 25 July 2016, the Cyprus Securities and Exchange Commission (CySEC) has today announced that it has suspended the Cypriot Investment Firm (CIF) licence of Best Choice FBC Ltd., giving it one month to comply.
Best Choice FBC Ltd is an online forex brokerage which operates under the URL https://bcfxbroker.com/. The company joins a series of other forex brokerages that also recently had their licences suspended for a series of violations, as reported by Finance Magnates.
According to the Cypriot watchdog, there are suspicions of possible non-compliance of an alleged violation of section 28(1) of the Law due to the Company’s possible non compliance with section 12 (persons who effectively direct the business of a CIF), section 13 (CIF shareholders) and section 18(2)(j) of the Law relating to the protection of clients’ funds.
Staying Ahead: How Brokers Are Approaching 2020Go to article >>
Endangering Clients’ Interests
CySEC reached its decision as the alleged violations may endanger the company’s clients’ interests and the smooth operation of the capital market.
Best Choice FBC now has one month to take the necessary actions in order to comply with the specified provisions. During this time, the company cannot provide any services or enter into a business relationship with any person and take on any new clients.
In addition, Best Choice FBC is not allowed to execute any orders from clients for buying financial instruments or provide any investment services in or outside of Cyprus.
Furthermore, it is not permitted to advertise itself as an investment services provider or have relating advertisements. The company must also close all open positions in relation to clients’ contracts on their maturity date, or on an earlier date if the client so wishes as well as return to any funds and profits earned to existing clients.
CySEC also stipulates that any firm that has its licence suspended should mention on all its websites that its CIF licence has been suspended, which in this case, has yet to take effect.