Non-compliance pertinent issues brought the regulator to suspend the company’s activities temporarily, with waving tougher punishments that could reach to revoking the company’s license permanently, in case the latter failed to comply with the regulations.
November 15, 2018 AtoZ Markets
The Cyprus Financial regulator CySEC has issued today a decision suspending the license of Fenix Capital Markets Trading.
CySEC referred in its decision to non-compliance practices by the company, in particular with section 22(1) of the Cypriot regulation.
“The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm Fenix Capital Markets Trading Ltd (‘the Company’), number 308/16, is suspended in whole, pursuant to section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’) and section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘DI87-05’), as there are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorisation condition in section 9(16) (management body) and in section 10 (governance arrangements) of the Law.”, said the regulator in its decision.
CySEC’s decision comes to protect consumers
The decision comes for protecting the company’s clients, as per CySEC.
The penalised company is requested to take action within 15 days to comply with the necessary provisions, before applying for reactivating its authorisation.
In the meantime, Fenix, according to section 9 of DI87-05, is prohibited from providing any investment services, getting involved in new businesses, accepting new clients, or even advertising itself as an investment service provider.
On the other hand, the decision allows the company to complete the transactions it started with its clients before, should the latter wish that, in addition to returning the funds belonging to its existent clients.
Fenix was requested as well to inform on all its websites about the suspension of its license, along with being warned that if it fails to amend the compliance gaps it was penalised for, the regulator will revoke its authorisation license permanently.