CySEC confirms that Rodeler Ltd, the parent company of 24option have renounced their CIF license following their UK ban. Hoch Capital has also notified the regulator of its intentions to renounce their CIF authorization.
July 22 2020 | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) announced today that two regulated companies – Hoch Capital Ltd and Rodeler Ltd – had renounced their Cyprus Investment Firm (CIF) licenses.
Hoch Capital Ltd was trading as iTrader and tradeATF while Rodeler Ltd traded as 24option.
24option parent company renounces CySEC CIF license
Though the announcement was made today, the Cypriot watchdog revealed that, at its meeting on July 6, 2020, it approved, the proposed timeframe of the implementation of actions by the companies prior to CySEC revoking their authorization.
In respective notices, the regulator stated that each of the firms “had notified CySEC of its decision to expressly renounce its Cyprus Investment Firm (CIF) authorization and, at its meeting on 6th July 2020, CySEC has approved, pursuant to Article 4(4) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the Directive’), the Company’s proposed timeframe of [the] implementation of actions as provided in article 4(3) of the Directive.”
Are Hoch Capital and Rodeler relaible or scam?
Earlier in April, the Italian regulator CONSOB flagged Hoch Capital Ltd. Back in June, CySEC said it was suspending the CIF authorizations of these brokers. It is also worthy of note that the UK Financial Conduct Authority (FCA) banned Hoch Capital Ltd and Rodeler Ltd from offering CFD trading services in the UK.
The regulator said that these firms used unauthorized celebrity endorsements on social media as part of their marketing. The firms used social media and webpages carrying fake endorsements from celebrities to entice consumers into the scams involving CFDs.
The FCA estimates that UK investors have lost hundreds of thousands of pounds in these investments. A number of customers have reportedly lost more than £100,000 to the schemes.
Notably, both Hoch Capital and Rodeler were among the key customers of collapsed German fintech Wirecard.
Meanwhile, the CySEC remained vigilant towards any violations of laws by the companies under its purview. It recently asked the regulated companies to follow the FATF-recommended AML/CFT guidelines for increasing financial crimes as the COVID-19 outbreak continues.
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