Cypriot regulator, CySEC confirmed that the withdrawal of the ICF membership of Forex broker Otkritie Capital Cyprus Ltd.
February 10, 2021 | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) on Wednesday announced that the Investors Compensation Fund (ICF) has withdrawn the ICF membership Otkritie Capital Cyprus Ltd.
Otkritie Capital Cyprus ICF Membership Withdrawn
According to the regulator, the loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients.
The withdrawal of the ICF membership was carried out after CySEC’s decision to withdraw the Cyprus Investment Firm (CIF) authorization of the company Otkritie Capital Cyprus. As a reminder, AtoZ Markets reported back in January 2021, that Otkritie Capital Cyprus voluntarily renounced the Cyprus Investment Firm (CIF) license, due to the company’s decision to expressly renounce it.
However, with some degree of probability, it can be assumed that this step was caused by the sale of its foreign structures – Otkritie Capital International Limited (Great Britain) – purchased by the Rossium together with Otkritie Capital US Inc. ( USA) and Otkritie Capital (Hong Kong) Limited (Hong Kong) and renamed Sova Capital in early 2018).
The fact is that back in June 2020, Otkritie Capital Cyprus turned to its clients and notified them of, in fact, the termination of its activities. At the same time, the investment company announced its decision to revoke the CIF license and asked clients to close all trading positions and withdraw their funds from trading accounts.
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