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Screenshot of a breaking news alert e-mail from Q2 2017
The Cyprus Securities and Exchange Commission (CySEC) showed its regulatory teeth today by announcing the suspension of the Cyprus Investment Firm license of CommexFX Ltd, citing violations of investment laws.
The suspension is temporary at this point – for 15 days, during which the retail Forex broker has to implement measures to tackle the problems identified by the Cypriot regulator.
In particular, CySEC says that there are suspicions that the company violated section of the Investment Services and Activities and Regulated Markets Law that concerns ‘Operational requirements – Clients’ funds’, as well as Directive DI144-2007-01 of 2012, with regards to ‘Safeguarding of clients’ funds’.
The decision to suspend the license was taken due to the fact that the aforementioned alleged violation may possibly endanger the Company’s clients’ interests and generally the normal operation of the capital market.
During the time the suspension of the authorisation is in force, CommexFX 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.
For the official announcement by CySEC, click here.