Financial and Business News

VM Vita and HTFX EU Lose Investor Fund Protection: CySEC Proposes Higher Fees for CIFs

Friday, 13/02/2026 | 13:15 GMT by Tareq Sikder
  • Clients retain rights to past compensation despite firms losing ICF membership.
  • ICF covers limited client funds, not trading losses; compensation is capped.
Ajax Building, Nicosia, CySEC Headquarters, Source: Wikipedia
Ajax Building, Nicosia, CySEC Headquarters, Source: Wikipedia

The Cyprus Securities and Exchange Commission has confirmed that the Investors Compensation Fund has withdrawn the membership of two firms, VMVita Markets Ltd and HTFX EU Ltd. Both had previously been licensed as Cyprus Investment Firms and offered retail trading services, including contracts for difference.

The changes come amid a broader regulatory update, as CySEC seeks to adjust the cost of doing regulated investment business in Cyprus.

The consultation covers Cyprus Investment Firms, foreign branches, and market operators, introducing higher licence and service fees as well as charges for material change notifications and algorithmic trading.

The update also removes some outdated items, including a crypto‑services approval fee now covered under EU MiCA rules, aligning costs more closely with firms’ size, business model, and turnover.

Clients Retain Rights Despite ICF Withdrawal

Today’s (Friday) move follows CySEC ’s earlier decision to revoke the investment firm licences of both companies. HTFX’s licence withdrawal has already been reported by Finance Magnates, though no further details were provided on the reasons for the cancellations.

CySEC clarified that the loss of ICF membership “does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status” if conditions for compensation are met. The regulator added that the change “does not obstruct the initiation of the compensation procedure for covered clients.”

The ICF provides limited compensation to eligible clients if a regulated firm cannot return client funds or instruments. It does not cover trading losses, and compensation is capped per eligible client.

Cyprus CFD Brokers Face Regulatory Changes

With the withdrawal of membership, both firms are no longer part of the investor protection scheme for future business. Clients may still seek compensation for eligible past dealings under the fund’s rules.

The action comes amid wider regulatory changes in Cyprus, where several CFD and retail brokers have recently seen licence cancellations or have voluntarily left the market.

The Cyprus Securities and Exchange Commission has confirmed that the Investors Compensation Fund has withdrawn the membership of two firms, VMVita Markets Ltd and HTFX EU Ltd. Both had previously been licensed as Cyprus Investment Firms and offered retail trading services, including contracts for difference.

The changes come amid a broader regulatory update, as CySEC seeks to adjust the cost of doing regulated investment business in Cyprus.

The consultation covers Cyprus Investment Firms, foreign branches, and market operators, introducing higher licence and service fees as well as charges for material change notifications and algorithmic trading.

The update also removes some outdated items, including a crypto‑services approval fee now covered under EU MiCA rules, aligning costs more closely with firms’ size, business model, and turnover.

Clients Retain Rights Despite ICF Withdrawal

Today’s (Friday) move follows CySEC ’s earlier decision to revoke the investment firm licences of both companies. HTFX’s licence withdrawal has already been reported by Finance Magnates, though no further details were provided on the reasons for the cancellations.

CySEC clarified that the loss of ICF membership “does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status” if conditions for compensation are met. The regulator added that the change “does not obstruct the initiation of the compensation procedure for covered clients.”

The ICF provides limited compensation to eligible clients if a regulated firm cannot return client funds or instruments. It does not cover trading losses, and compensation is capped per eligible client.

Cyprus CFD Brokers Face Regulatory Changes

With the withdrawal of membership, both firms are no longer part of the investor protection scheme for future business. Clients may still seek compensation for eligible past dealings under the fund’s rules.

The action comes amid wider regulatory changes in Cyprus, where several CFD and retail brokers have recently seen licence cancellations or have voluntarily left the market.

Topics
cysec
retail FX
retail forex
retail brokers
retail
About the Author: Tareq Sikder
Tareq Sikder
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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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