CySEC extended ACFX license suspension until further notice. How much longer does ACFX has to remedy the case, before CySEC to revoke ACFX license?
12 September, AtoZForex – Earlier this year on the 7th of April CySEC has issued an ACFX license suspension directed on the CIF’s parent company Atlas Capital Financial Services Ltd.
ACFX's license suspension background
The reasons for the suspension of ACFX license included low-quality client support in terms of monitoring and risk-management. Also, a few weeks before suspension it was reported that the CySEC regulated Forex broker, ACFX experience withdrawal delays for Chinese clients. The official announcement from CySEC that time stated that the following breaches by ACFX took place:
Section 18(2), paragraphs
(c) – Continuity and regularity in the performance of investment services
(f) – Effective procedures for identifying, managing, monitoring and reporting of the risks
(j) – Safeguarding of clients funds, of the Law
Section 18(1), paragraph
(f) – Adequate arrangements for the safeguarding of clients funds, of Directive DI144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs.
Following the story, on the May 25th, ACFX’s license suspension was prolonged by CySEC. That time The Forex and CFDs broker’s office ran empty, with only the General Manager Petar Gazivoda and a few other staff staying around in an effort to revive the firm.
See also: Xtrade Earns “Approved Forex Broker” Badge from Industry Watchdog
CySEC to revoke ACFX license?
Earlier last Friday, the Cypriot regulator has issued a public announcement, where it has stated that “the suspension of the authorisation of the Cyprus Investment Firm ‘Atlas Capital Financial Services Ltd’ (‘the Company’), with number 085/07, has automatically been extended and the proceedings for the possible withdrawal of the relevant authorisation has commenced, pursuant to section 26(4)(b) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’). The Company’s CIF authorization will remain suspended until the Commission decides whether to withdraw or not the relevant authorization.”
Moreover, Cypriot watchdog is currently considering the permanent withdrawal the CIF license of ACFX. It is also known that the clients of the firm are guaranteed to get the refund only after the appointment of a special administrator for the bankruptcy issues of the firm.
The latest suspension by CySEC also prohibits the ACFX from acquiring any new clients as well as doing business with the existing ones. Additionally, the firm is restricted from “providing/performing any investment services in Cyprus or outside Cyprus (in member states and third countries).”
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