The devil is in the detail. Find out the reasons behind the Cypriot financial regulator's decision to suspend the BCFX CySEC License. What is next for BCFX and its clients?
9 August AtoZForex — The Cyprus Securities and Exchange Commission (CySEC) has suspended the CIF license of a fairly new Forex broker, named Best Choice FBC Ltd (BCFX). Today’s decision of the regulator was based on the outcome of the board meeting on the 25th of July this year.
BCFX broker was incorporated in the Republic of Cyprus with registration number HE 311543, and operates through the website bcfxbroker.com. Evidently, the Forex broker is authorised by CySEC and holds the license number 234/14.
On what grounds did CySEC suspend BCFX’s license?
Earlier today, CySEC extended the license suspension of UBFS Invest, prolonging the deadline for the broker to remedy its non-compliance. Hours later, the Cypriot financial regulator has suspended BCFC CySEC license, due to suspicions of possible non-compliance of alleged violations of the following sections:
I. Section 28(1) of the Law, due to the Company’s possible non-compliance, at all times, with the condition if its authorization provided for in section 12 (persons who effectively direct the business of a CIF)
II. Section 13 (CIF shareholders)
III. Section 18(2)(j) of the Law and paragraphs 18(1)(f) and 20(1) of Directive DI ΟΔ144-2007-01 of 2012 (protection of clients’ funds).
Based on these alleged violations, CySEC has reached its decision to suspend BCFX CySEC License. As the Cypriot regulator believes that these violations may endanger BCFX’s clients’ interest and affect the operations of the capital market.
BCFX’s troublesome operations
On a different note, one of the BCFX staff who prefers not to disclose the identity commented to AtoZForex.com the following: "The company's troublesome operations started after one of the leading senior members (I can not disclose the name) left the company."
Does this implicate that there are possible links between the mysterious Cyprus Police arrest case of last month? Based on information from our contact at the Limassol Police Department, the suspect is a 36 years old professional with a Romanian nationality and worked for BCFX Broker.
What is next for BCFX and its clients?
In today’s announcement, CySEC ordered BCFX Broker to take all required actions to remedy the possible non-compliance of alleged violations within one month. During this period, BCFX is not allowed to offer any investment services in or outside Cyprus, take on new clients or enter into a new business relationship.
Moreover, BCFX is barred from executing any clients’ orders, advertising its brand and services. As per the handling of its clients, BCFX is mandatory to close all open positions respecting the clients’ contracts. Meaning that they should be closed on either the maturity date or an earlier date. Also, BCFX has to return the funds and earned profits of existing clients, in case it is requested.
Following the decision of CySEC, BCFX Broker has taken its first step to remedy the case and disclosed on its homepage that the broker’s license has been suspended.
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