The Cyprus Securities and Exchange Commission (CySEC) today announced the suspension of the Cyprus Investment Firm license of Trademarker (Cyprus) Ltd, which operates via the brands SkyFX and Capital Option.
The watchdog said the suspension reflected suspicions of an alleged violation of section 28(1) of Investment Services and Activities and Regulated Markets Law. In particular, the company is alleged to be in breach of:
- section 12 (persons who effectively direct the business of a CIF;
- section 13 (CIF shareholders);
- section 18(2)(c) (organisational requirements).
The watchdog notes that the aforementioned alleged violations may put at risk the company’s clients’ interests and the smooth operation of the capital market in general.
The watchdog gives fifteen (15) days from the date of CySEC’s Decision to Trademarker (Cyprus) Ltd to take actions in order to comply with the provisions just mentioned.
During the suspension of the authorisation, the company:
Cannot provide/perform any investment services/activities, pursuant to section 26(5)
of the Law.
Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:
- 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.
- Return to existing clients all of their funds and profits earned.
This is not the first time that the Cyprus regulator sanctions Trademarker. In May last year, the regulator published its decision to impose a EUR 20,000 penalty on the company, with the biggest part of the fine reflecting the broker’s failure to ensure the appropriateness of shareholders.
You can view the official announcement on the license suspension by clicking here.