24 September, AtoZForex.com, Amsterdam — It has been a busy month for the Cypriot regulator, aside handing out several warnings to firms like Ubroker and MXTrade, CySEC is still in progress of numerous investigations. Such of which is the ongoing case of IronFX. Nevertheless, CySEC remains more watchful as ever, as today the regulator announced the suspension of Falcon Brokers.
Falcon Brokers Ltd. is a forex brokerages licensed with CySEC under number 128/10 and operates through the following website. The broker offers a wide range of financial instruments ranging from forex, CFDs, metals, indices, options and more. Hence, meeting the demands of the beginning and more advanced traders
Relating back to the license suspension of Falcon Brokers, CySEC has based this action on the discovery of the broker not being compliant with the regulator’s legal requirement for client funds. In exact terms it depicts a violation of CYSEC’s Investment Services & Activities and Regulated Markets Law of 2007.
One month time to solve the issue!
As CySEC suspends Falcon Brokers license, the broker has been given one month time to take measures, in order to become compliant again. In the meantime, Falcon Brokers license is suspended by CySEC. Hence, the broker cannot carry out any of the following activities for now (extracted of CySEC announcement):
1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
2. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:
- Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
- Return to existing clients all of their funds and profits earned.
Stay tuned with AtoZ Forex for the latest news upon the case of Falcon Brokers.
Think we missed something? Let us know down in the comments section.