The Cyprus Securities and Exchange Commission (CySEC) entirely suspended the Cypriot investment firm (CIF) license of UGL Exchange Ltd. The company is suspected of non-compliance with the prudential requirements in terms of funds and capital ratio.
03 April, 2020 | AtoZ Markets – UGL Exchange Ltd, FX retail brokerage firm, obtained its license from CySEC in 2018 to offer margin trading in currencies, precious metals, cryptocurrencies and CFDs. According to its website, it provides front-line trading platforms and cutting-edge trading tools. It also provides advanced educational resources that cover the latest financial news and much more.
Early last year, it promoted its chief operating officer Alicia Ziomek, to the new chief executive officer (CEO). Alicia Ziomek has almost seven years of experience in the financial markets and joined the Cypriot retail company in June 2018. Alicia oversees operations daily business and executive work in the areas of IT, marketing, sales and finance.
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Cyprus Regulator Suspends UGL Exchange License
CySEC suspended the Cyprus investment firm (CIF) license of UGL Exchange Ltd entirety. CySEC ordered the company to take corrective action within a defined framework. If not, additional measures will take, such as imposing new fines and/or even withdrawing their license.
The Commission stated that their decision was based on possible breaches of the "prudential requirements", namely the funds and the capital ratio of UGL Exchange. CySEC also notes that the alleged violations raise concerns and risks related to the protection of the company's customers or investors. It also poses a threat to the orderly functioning and integrity of the market. However, the company is not permitted to:
- Provide/execute investment services/activities.
- Perform any commercial transaction with any person and accept any new customer.
- Advertise itself as an investment service provider.
Within one month, the UGL Exchange, previously known as Baynet Ultrasimple Global (Cy) Ltd, must take steps to comply with the above provisions. It must also close all open positions relating to client contracts on their expiry date or at their request, as well as return the funds and profits.
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