18 April AtoZForex, Amsterdam — Today, the Cyprus Securities and Exchange Commission (CySEC) has taken harsh measures against Falcon Brokers Ltd. After providing Falcon Brokers several opportunities to remedy its suspended license since September 2015, the Forex broker has failed to resolve the case. Hence today, CySEC disclosed the board's decision of Falcon Brokers license withdrawal.
Falcon Brokers is a CySEC regulated forex broker under the CIF number 128/10. The forex broker offers a wide range of investment instruments from Forex, metals, indices, CFDs, options and more. Regarding to the license withdrawal, today’s announcement was based on CySEC’s board decision of the 28th of March 2016.
Falcon Brokers’ license suspension (twice)
The situation that lead to Falcon Brokers license withdrawal, started with Falcon Brokers’ license suspension back on the 24th of September 2015. The initial license suspension of the Forex broker was issued after CySEC discovered Falcon Brokers non-compliance with the financial regulator’s operational requirements for clients’ funds.
Close to a month after the initial license suspension of Falcon Brokers, CySEC extended the suspension. Based on the grounds that Falcon Brokers was not able to fully remedy the case. Following, the first license suspension extension CySEC extended the new deadline for the 30th of November 2015. Yet, again Falcon Brokers was not able to resolve the issues in the given time frame, forcing CySEC to grant the Falcon Brokers' second license suspension.
Apparently, the extra time gained by Falcon Brokers was not sufficient, as at the end of both license suspension extensions, CySEC was still not satisfied with the broker’s position. Evidently, the patience of the financial regulator ran out, as today CySEC announced the Falcon Brokers license withdrawal.
Falcon Brokers license withdrawal
According to the official announcement of CySEC, the retail Forex broker has been provided a time period of 3 months to resolve all obligations regarding the ancillary and offering investment services.
In the meantime, the financial watchdog commanded Falcon Brokers to remove all references of being licensed by CySEC from its website. In case, Falcon Brokers possess over other websites, it’s the Forex broker’s responsibility to remove all CySEC’s references on those website too.
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