Cedar was late in filing paperwork with CySEC, and in any event is focusing on Asia.
Seems as though CySEC licensing isn’t all its cracked up to be for binary options brokers. Cedar Finance, one of a handful of binary options brokers to receive CySEC licensing in the past few months, has now seen its CIF license suspended by CySEC.
CySEC, in its usual vague and not-very-helpful way of presenting things, stated a very generic “suspicions for an alleged violation of the requirements for authorisation and in particular of sections 10(1) – Initial Capital, 11 – Memorandum of Association, 12 – Persons who effectively direct the business, 13 – Shareholders, 28 – Ongoing obligations, 33 – Shareholders.”
CySEC also stated that “previous mentioned alleged violations may possibly endanger the Company’s clients interests and generally the smooth operation of the capital market.”
(The people at CySEC should take a look at press releases put out by the CFTC in the US and the FCA in the UK — they typically are very specific and therefore helpful to the audience they’re meant to serve.)
What did CySEC mean exactly?
It is hard to know exactly, without CySEC giving specifics and without the company talking either. However, LeapRate has learned that the suspension was administrative, coming about after Cedar was late in filing certain documents with CySEC. It seems as though the Cedar folks voluntarily allowed their CIF license to lapse, as it had become more trouble and expense than it was worth.
With most of Cedar’s growth coming from the Far East, and the CySEC license not really paying any dividends for Cedar, it seems as though Cedar management is content with basically abandoning their CIF license. CySEC did state that the company has one month to rectify the situation, so we’ll see soon if indeed they choose to or not.
For the complete CySEC press release re Cedar Finance click here.