2 August, AtoZ Markets – The Cypriot regulatory body, the Cyprus Securities and Exchange Commission (CySEC) has made a public announcement regarding one of the market participants. The watchdog has informed the public that Capital Index (Cyprus) Ltd has applied for renouncement of its Cyprus Investment Firm (CIF) license.
Capital Index CySEC CIF License Renounced
Capital Index (Cyprus) Ltd is the branch of the multi-regulated brokerage Capital Index. It is understood that Capital Index’s license renounce is entirely voluntarily. The company has decided to move with this step by itself and the surrender of the license does not arise from any regulatory action taken by the CySEC.
However, the regulator did not mention why exactly did Capital Index decide to give up its CIF license. While the reasons behind this decision remain uncertain, the CySEC will continue overseeing the financial service company until it has taken care of its responsibilities arising from holding a license.
Broker’s website now indicates that Capital Index (Cyprus) Ltd has proceeded with changes in its website. It has removed any references concerning the authorization and supervision of the entity by CySEC. In addition, the company has shared the following statement on its website:
“We would like to inform you that, Capital Index (Cyprus) Ltd. (hereinafter referred to as the “Company” and/or “CICY”) will cease the provision of investment and ancillary services through the sub-domain www.capitalindex.com/eu/ as at 20th of July 2018 subject to the Company’s decision to proceed with the withdrawal of its Cypriot Investment Firm Authorisation. All CICY clients will be notified independently via e-mail/MT4 for further actions in relation to their account(s).”
What now for Capital Index (Cyprus) Ltd?
Now, once the decision will be confirmed by yet another announcement later, Capital Index will no longer hold the license by CySEC. The company will not be able to provide financial or ancillary services to Cypriot residents.
The regulator will give the entity three months time frame to settle its obligations arising from the investment services that will be lapsed. During that time, the company will remain under CySEC’s supervision.
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