The Cyprus Securities and Exchange Commission (CySEC) announced this Wednesday that it has come to the decision to suspend in whole the Cyprus Investment Firm (CIF) license of Belight Capital Group Ltd.
Belight Capital is a foreign exchange (forex) broker. According to the statement released by the Cypriot regulator, it has suspicions that the broker allegedly violated:
- Articles 92(1) and 93(1) of Regulation (EU) No 575/2013 on prudential requirements, regarding own funds and capital ratio,
- section 22(1) of the Law, due to the company’s possible non-compliance at all times with sections 9(16) of the Law in relation to the obligations concerning its board of directors, and 17(1) and 17(2) of the Law, as specified in article 21(1)(d) of Regulation 2017/565, regarding its organizational requirements.
- The company does not seem to have provided investment services during the last six months.
By suspending the FX broker’s license, the regulator has exercised power granted to it under Article 70(1)(f) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).
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CySEC: Belight Capital has 15 days to comply
“The above decision was reached as the aforementioned alleged violations cause concern and risk relating to the protection of the Company’s clients or investors and constitute a threat to the orderly operation and integrity of the market,” CySEC said in its statement today. “Within fifteen (15) days, the Company has to take actions in order to comply with the aforementioned provisions.”
Whilst under the suspension, Belight is not allowed to provide or carry out any investment services/activities. It also can’t enter into any business transaction with any person or accept new clients. The broker can’t advertise itself as a provider of investment services.
Today’s announcement comes just days after CySEC wholly suspended the CIF License of FX retail brokerage firm UGL Exchange. As Finance Magnates reported, the regulator ordered the company to take corrective measures within a set framework; otherwise, additional measures will be taken, such as the imposition of new fines and/or even the withdrawal of their licenses.