The Cyprus Financial regulator CySEC today said it has wholly withdrawn the Cyprus Investment Firm (CIF) License of ‘PFX Financial Professionals Ltd,’ which operates the brand FXFINPRO Capital, according to a decision made at its meeting on October 22, 2018.
According to the regulatory manifest, FXFINPRO, which holds registration number 193/13, had its license lapsed after CySEC raised concerns over practices by the company and its executives that the watchdog deemed potentially not compliant with its regulatory obligations.
In particular, the broker was initially flagged for non-compliance with section 28(1) of the Law which concerns persons who effectively lead its business, as well as an alleged violation of section 36(1) of the Law (Conduct of business obligations when providing investment services to clients). Further, FXFINPRO didn’t comply with the section 114 with regards to submitting its financial accounts, as well as the section 139(1) which requires regulated firms to provide the CySEC with correct, complete and accurate information.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
No longer licensed by CySEC
A visit to the broker’s website reveals that FXFINPRO has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC. The company is also required to cease the provision of its services through the Russian domain http://www.finproinvest.ru.
The regulator will give the broker three months from that date to settle its obligations arising from the investment services that will be lapsed, during which time it remains under the Cypriot watchdog’s supervision.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, FXFINPRO must provide a confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients.