The decision comes “pursuant to section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’) and section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘DI87-05’), as there are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorisation condition in section 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the safeguard of clients’ funds.” As the regulator stated on its website.
AFX Capital Markets LTD., as the decision reads, did not comply with the standards of securing clientele’s funds, as long as having posed a threat to investors, and “the orderly operation and integrity of the market.”
In the details of the news, the regulator stresses that as long as the company has not reached any settlement with CySEC yet, the following provisions apply:
1. The Company is not permitted to:
1.1 Provide/carry out investment services/activities.
1.2 Enter into any business transaction with any person and accept any new client.
1.3 Advertise itself as a provider of investment services.
2. The Company, provided this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05:
2.1. Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
2.2. Return all funds and financial instruments which are attributable to its clients.
This is not the first time CySEC punishes AFX Capital Markets LTD.
The company’s record carries another punishment the regulator imposed a few years ago.
CySEC’s archive tells that the former had scorched the firm with a group of administrative fines that totaled € 10,000 for offences generalized in three points, as the regulator’s decision published in Greek reads:
“- the Investment Services and Activities and Regulated Markets Law of 2007, as applicable (the "Law"),
- the Cyprus Securities and Exchange Commission Directive No144-2007-01 of 2012 on the Conditions for Licensing and Operating a CIF ('Directive 1'), and
- the Capital Market Commission's Subsidiary Change and Information Disclosure Directive (Directive 1214 / 2007-12) of 2012 ('the 12th Directive'),
which were found during the on-site audit by the Committee on the Company in February 2013.”
It is worth mentioning that AtoZ Markets tried to reach to AFX Capital Markets LTD. in a phone call, but the latter was not answered.