10 March AtoZForex, Lagos – Following up on a previous ruling by the Cyprus Securities and Exchange Commission (CySEC) to suspend the Cyprus Investment Firm license of ‘Trademarker (Cyprus) Ltd” back on 15 February 2016. Now, close to a month later, the financial regulators have decided to extend the Trademaker’s license suspension. Hence, its brand names Capital Option and SkyFX license suspension also got extended.
Pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law (‘the Law’). CySEC has revealed that Trademarker still:
- Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
- Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law, close all open positions in relation to clients’ contracts, or its own, on their maturity date or on an earlier date.
- Return to existing clients all of their funds and profits earned.
Prior issues with CySEC
Having the Capital Option and Skyfx license suspension extended, the parent company did not receive a fine from the regulator this time. Considering that back in 2015, Skyfx was hit with a total fine of €20,000, which was based on regulatory lapses under which the company was found to be at fault.
Out of the €20,000 fine, half was levied based on the company’s violation of suitability of shareholders. The other half of the penalty was based on failure to comply with the regulations and the rules. In regards to outsourcing services to other countries, such as the marketing activities in Israel.
According to a statement from the Cypriot financial regulator, the firm’s CIF license was suspended based on alleged violations of the law, leading to the company’s likelihood of “non-compliance at all times” with the condition of its authorization. These violations are very serious, because they possibly endanger the best interest of the company’s client’s and the general operations of the capital market.
Two important standards which CySEC primarily stand to protect. Hence, Trademarker is expected to take action to put its activities in order. In order to comply with CySEC’s code of conduct, within fifteen days from the date of the regulator’s decision to suspend their license.
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