Breaking: CySEC ACFX license suspension

7 April AtoZForex, Amsterdam — It has been a remarkable day for the Cyprus Securities and Exchange Commission (CySEC), as the regulator has issued another pressing notice relating to the license of a Cyprus Investment Firm (CIF). According to the latest announcement, CySEC has issued an ACFX license suspension directed on the CIF’s parent company Atlas Capital Financial Services Ltd.

A few weeks ago, it was reported that the CySEC regulated forex broker, ACFX experience withdrawal delays for Chinese clients. Considering that the forex broker started an investigation into the accounts of its Chinese clients, due to the suspicion of a number of clients to have abused the incorrect swap rates of ACFX.

ACFX non-compliance at all times

Adding extra pressure on the CIF firm, today CySEC imposed an ACFX license suspension. Due to the fact that ACFX’s parent company, with number 085/07 has been alleged with possibly non-compliance at all times with the financial regulator’s operating conditions and authorization. These alleged breaches encompasses the following, which has been derived from CySEC’s official announcement:

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 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.

Based on these alleged counts, CySEC indicates that it was deemed necessary to issue an ACFX license suspension, in order to protect the company clients’ of possible dangers associated with these suspicious violations.

One month to remedy the license suspension

Given a fair term to remedy the alleged non-compliance violations, Atlas Capital Financial Services Limited has been provided one-month time to take action. In the meantime, the CIF firm has been restricted with the conditions below:

1. Cannot enter into a business relationship with any person and cannot take any new clients.

2. Cannot receive, transmit or execute any orders from clients for buying any financial instruments.

3. Cannot provide/perform any investment services in Cyprus or outside Cyprus (in member states and third countries).

4. Cannot advertise itself as investment services provider and make advertising campaigns and announcements.

See also: Interactive Option license suspension extended

5. Must upload on all of its websites that its CIF license has been suspended.

6. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law:

6.1. 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.

6.2. Return to existing clients all of their funds and profits earned.

Stay tuned with for the latest updates on the case of ACFX.

Think we missed something? Let us know down in the comments section.

Share Your Opinion, Write a Comment