A multi-regulated brokerage firm, Capital Index has made the decision to give up its CySEC CIF license. The company’s decision, according to the regulator is not due to any regulatory action by CySEC.
November 2, 2018 | AtoZ Markets – The Cypriot regulatory watchdog, the Cyprus Securities and Exchange Commission (CySEC) has made a public announcement regarding a multi-regulated brokerage firm, Capital Index (Cyprus) Ltd.
The watchdog has informed the public that Capital Index (Cyprus) Ltd has renounced its authorization, which is the Cyprus Investment Firm (CIF) License.
Capital Index Renounces CySEC CIF License
CySEC stated clearly that the brokerage firm has voluntarily surrendered its license based on the company’s decision and not as a result of any regulatory action taken by the regulator.The full CySEC notice reads as follows:
The Cyprus Securities and Exchange Commission (‘CySEC’) announces that, on its meeting of 29th October 2018, has decided, pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 (ΝI87(I)/2017), to withdraw the Cyprus Investment Firm authorisation with number 249/14 of the company Capital Index (Cyprus) Ltd (‘the Company’), due to Company’s decision to expressly renounce it.
The regulator, however, did not state the reason why Capital Index made the decision to call it a day with its CySEC CIF license, as it has seen several regulated brokers recently voluntarily surrendering their license in their own terms, and not because of any regulatory issues.
While the reasons leading up to this decision remain unclear, the CySEC will continue to maintain supervision over the financial service company until it has taken care of its responsibilities as required by the license.
A look at the broker’s website now shows that Capital Index (Cyprus) Ltd has already made changes in its website by removing references regarding the authorization and supervision of the entity by CySEC. Additionally, the company has shared the following statement on its website:
Due to the immediate actions that need to be undertaken by our Regulator, the Company will ensure that closure of open trades/accounts, as well as withdrawal requests, will be dealt with immediately.
It shall be clarified that the Company is fully aware of the legal requirements and obligations in relation to the renouncement of its license and will proceed with all the necessary actions that are required to be taken.
What is Next For Capital Index (Cyprus) Ltd?
CySEC will now give the brokerage firm three months from October 29, the date it renounced its authorization, to settle its obligations arising from the investment services that will be lapsed. Until then, Capital Index will remain under the supervision of the Cypriot watchdog.
Moreover, the Cypriot regulatory framework requires that the entity is under compulsion to return all outstanding balances to its clients and handle all of their complaints.
Additionally, Capital Index is also mandated to provide a confirmation from its external auditor that it does not have any pending obligations and should also have the details of each of the company’s clients included.
Capital Index (Cyprus) is owned by a self-acclaimed Master Trader, Greg Secker. Secker hired Matthew Wright, former Destek Markets CEO to run the firm in late 2017, replacing co-founder Robert Woolfe, who has recently joined GKFX as CEO in 2014.
The firm opened a London branch office in 2015 and became authorized and regulated by the UK’s Financial Conduct Authority (FCA).
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