CySEC Extends Suspension of Cyprus Investment Firm Depaho Ltd


CySEC has extended the suspension of the authorization of FXGM’s parent company, Depaho Limited.

July 28, 2021, | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC), following the Announcement dated 9.7.2021, announces that the suspension of the authorization of FXGM’s parent company, Depaho Limited, number 161/11, is extended.

The Cyprus Investment Firm has now been given a two-month period to proceed with the necessary actions in order to comply with the relevant provisions of The Investment Services and Activities and Regulated Markets Law of 2017 and of Regulation (EU) no. 600/2014.

For as long as the suspension of the authorization is in force, as provided for in section 9
of DI87-05:

1. The Company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new
    client.
  • 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 a breach of section 7(a) of DI87-05:

  • Complete all its own transactions and those of its clients which are before it,
    in accordance with client instructions.
  • Return all funds and financial instruments which are attributable to its clients.

As AtoZMarkets earlier reported, the Cyprus financial regulator imposed a €270,00 fine on the contract for difference (CFD) and forex broker for violating investment regulations. CySEC revealed that Depaho violated organizational requirements, as well as CIF authorization provisions, order execution requirements, principles, and information of clients and had a conflict of interest.

Following the CySEC investigation, the regulator discovered that the violations occurred between January 2018 and July 2019. As AtoZMarkets reported, Depaho faced similar fines in 2015 from the Cypriot regulator for non-compliance with several regulatory requirements.

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment