Cyprus Securities and Exchange Commission (CySEC) today announced that following a decision in a meeting held November 30th, 2015 that authorization of the Cyprus Investment Firm ‘Falcon Brokers Ltd’, with license number 128/10, will continue to be suspended indefinitely. This continuation follows from one month ago where the same decision was reached for the troubled forex broker.
The regulator initially suspended the CIF license of Falcon Brokers on September 24, 2015, referring to alleged violations of operational requirements related to clients’ funds. Back then, CySEC said that the decision was taken as the alleged breaching of investment laws may potentially endanger the company’s clients’ interests and the smooth operation of the capital market in general.
While the suspension of the authorization is in force, Falcon Brokers Ltd:
1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
2. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:
2.1. 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.
2.2. Return to existing clients all of their funds and profits earned.
Click here for the official announcement.