November 19, 2019, | AtoZ Markets – The Cyprus Securities Exchange Commission (CySEC) today said it has lifted the November 8 suspension of the CIF license of Limassol-based FX broker Centralspot Trading.
This was according to a decision made at a meeting held on November 18, 2019.
The Cypriot regulator decided to recall the suspension of the authorization of Centralspot Trading. The FX broker holds registration number 238/14, pursuant to section 9(3)(a) of Directive DI87-05 for the Withdrawal and Suspension of Authorisation. CySEC explains that it has been satisfied that the company has complied with:
Article 92(1) of Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms (‘the Regulation’), in relation to its capital ratio.
Article 93(1) of the Regulation, in relation to its own funds.
Why CySEC temporarily suspended Opteck CIF license
Earlier in November, Centralspot Trading had its CIF license temporarily suspended by CySEC. This was after the regulator raised concerns over the law violations committed by the firm. As a result, CySEC imposed the punitive measures as the violations may endanger the company’s clients’ interests.
Throughout the suspension of its license, the company was not allowed to provide investment services. The broker was also barred from establishing a business relationship with any person and accept any new clients. The company was also not allowed to advertise itself as an investment service provider. More specifically, Centralspot was given 15 days to take the necessary steps to comply with the CySEC Regulatory Authority.
Just 11 days later, however, Centralspot Trading has indeed complied with each of CySEC stipulated measures.
About Centralspot Trading Ltd
As per CySEC’s website, Centralspot Trading Ltd operates under two brands: CFD trading firm Opteck and trading software firm FXVC. Moreover, the websites of both entities are up and running at the moment of publication of this article. Opteck’s website shows a warning that the firm does not accept new clients.
As AtoZMarkets reported, Opteck was initially flagged for non-compliance and had its license temporarily suspended by CySEC following several allegations of multiple violations. As a result, the company was fined €50,000 for outsourcing its services to third parties. At the time, the company was misrepresenting the qualifications of its personnel to clients and prospective clients.
Think we missed something? Let us know in the comments section below.