The Cyprus Securities and Exchange Commission (CySEC) confirmed on Tuesday that Hellenic Bank (Investments) Ltd, a wholly owned subsidiary of Hellenic Bank Public Company Ltd, has renounced its Cyprus Investment Firm (CIF) License, as of March 15, 2017.
Hellenic Bank Investments Ltd (HBI), backed by the second largest commercial bank in Cyprus, decided last year to wind down the operations of its retail brokerage service effective January 31, 2017.
“The decision does not have any significant financial or operational impact on the group and HBI’s resource will be redeployed within the group to cover identified needs,” the bank said in a statement on the website of the Cyprus Stock Exchange. “This decision does not affect the provision of services by the group to private banking clients and institutional clients”.
Accordingly, and pursuant to section 24(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2007, the CIF authorisation of ’Hellenic Bank Investments’ with number 004/03 has lapsed.
As of this date, the bank is no longer licensed and regulated by CySEC and cannot provide financial or ancillary services. The regulator gave Hellenic Bank three months from that date to settle its obligations arising from the investment services that also 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, Hellenic Bank 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, according to the same CySEC announcement.