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Screenshot of a breaking news alert e-mail from Q2 2017
Cyprus financial regulator ended the week by issuing a temporary suspension of the CIF license of forex and binary options brokerage group Boursotrade Ltd.
Boursotrade operates several brands including BourseBinary (binary options) and BoursePro (retail forex).
CySEC’s stated reasons for the suspension included non-compliance with:
- Persons who effectively direct the business of a CIF, and
- Capital adequacy ratio
The company has one month to take actions in order to comply with the appropriate provisions.
During the one-month suspension the company and its operating groups cannot take on any new clients, cannot receive, transmit or execute any orders from existing clients, and cannot advertise itself as an investment services provider. The company must also mention on all of its websites that its CIF licence has been suspended.
The full CySEC notice re Boursotrade Ltd follows:
17 March 2017
Announcement date: 17.03.2017 CySEC Decision date: 17.03.2017
Regarding: Boursotrade Ltd
Legislation: The Investment Services and Activities and Regulated Markets Law
Subject: Suspension of CIF licence
The Cyprus Securities and Exchange Commission (‘CySEC’) announces that the authorisation of the Cyprus Investment Firm Boursotrade Ltd (‘the Company’), number 235/14, is suspended, pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), as there are suspicions of an alleged violation of:
1. section 28(1) of the Law, due to the Company’s possible non compliance at all times with the authorization and operating conditions down in section 12 (Persons who effectively direct the business of a CIF) and section 18(2)(a) (Organizational requirements) of the Law,
2. section 67 of the Law (Own funds), and
3. Article 92(1) of the European Regulation 575/2013 (Capital adequacy ratio).
The above decision was reached due to the fact that the aforementioned alleged violations may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.
Within one (1) month, the Company has to take actions in order to comply with the aforementioned provisions.
While the suspension of the authorisation is in force, the Company:
1. Cannot enter into a business relationship with any person and take upon any new client.
2. Cannot receive, transmit or execute any orders from clients for buying any financial instruments.
3. Cannot provide/perform any investment services in Cyprus or outside Cyprus (in member states and third countries).
4. Cannot advertise itself as investment services provider and should mention on all of its websites that its CIF licence has been suspended.
5. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law:
5.1. Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
5.2. Return to existing clients all of their funds and profits earned.