CySEC suspends AirFinance license due to non compliance

June 20, AtoZForex As a part of its supervisory activities, CySEC suspends AirFinance license due to possible non compliance with regulator’s norms. The announcement covers more than just one brand as AirFinance Pro Ltd is a Cyprus Investment Firm (CIF) and the owner and sponsor of such brands, as Buzztrade, Investing Area, Uptrade7, and CFD Royal.

BuzzTrade Ltd. is a European regulated investment company, operating in the binary options trading market. The firm currently serves as a sponsor to the Portuguese football club Porto. This sponsorship agreement is endangered by AirFinance license suspension fact. This issue has also been commented by CySEC:

“The aforementioned alleged violations may possibly endanger the Company’s clients’ interests or the investor interests or generally the regular operation of the capital market as the Company has not been compliant with its reporting/filing obligation towards CySEC.”

Another AirFinance powered brand, CFD Royal is a European Investment firm, providing the trading services for investors. Investing Area is a registered brand name of Airfinance pro Ltd. The company offers ‘a solid structure which aims to provide traders the key to understanding financial trading and success in their future investment’, as it is stated on their official website.

One more brand’s name owned by AirFinance is Uptrade7. The firm is a European regulated investment company, offering the opportunity to trade in the binary options market.

Why was AirFinance license suspended?

CySEC has announced that it is suspending the license of CIF AirFinance Pro Ltd. The license will be suspended for a time period of one month, giving the CIF the opportunity to review its policies.

CySEC stated that The AirFinance license is suspended due to possible non-compliance with the framework of Cypriot regulator. As reported by CySEC, CIF has possibly violated section 28 (1) of the regulatory framework, which corresponds to the obligations of the company to comply with the regulations at all times.

AirFinance CySEc limitations

As CySEC suspends AirFinance license for one month, all AirFinance clients have been informed to close all of their open positions on their maturity date or on an earlier date. Additionally, the AirFinance is demanded to return the clients’ funds and profits earned to all of the customers that wish to withdraw.

The Cypriot regulator gave the company one month to regain the license. The firm needs to review its policies in order to comply with above mentioned provisions. In case AirFinance won’t change its policies its license will be fully suspended.

While the AirFInance CySEC suspension is in power, the company cannot be solicitation nor acquiring any new clients nor be receiving, transmitting or executing any orders from existing customers. Furthermore, as a part of the suspension notice all the AirFinance brands – Buzztrade, Investing Area, CFD Royal and Uptrade7 cannot operate in any jurisdiction regardless of regulation.

Following the suspension, CySEC prohibited AirFinance from making advertising campaigns and announcements and advertising itself as an investment services provider. AirFinance is also required to publish the announcement of its license suspension on all of its websites.

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

Share Your Opinion, Write a Comment