CySEC suspends FXFINPRO CIF license today due to the violation of the Investment Service and Activities and Regulated Markets Law. What is next for FXFINPRO?
CySEC suspends FXFINPRO CIF license
FXFINPRO Capital is the trading name of PFX Financial Professionals Ltd. The firm operates online via the website fxfinpro.com. It is mentioned in PFX Financial Professionals Ltd. website that it is regulated as a CIF by CySEC under license number 193/13. CySEC suspends FXFINPRO CIF license starting 24 November 2016, as it has breached the Investment Services, Activities, and Regulated Markets Law.
CySEC official announcement states that it is suspicious of an alleged violation by FXFINPRO regarding individuals, who effectively direct the company. Moreover, CySEC is doubtful regarding the conduct of business obligations of FXFINPRO, when providing investment services to clients. Also, CySEC has stated that these violations can be dangerous for the company’s clients’ interests.
What are the consequences for FXFINPRO?
In its official press release, Cypriot regulator has listed the obligations and for the company under the spotlight. CySEC stated that the firm cannot provide any more services, namely:
First, CySEC prohibited the company from entering into a business relationship with any person and taking new clients. Furthermore, FXFINPRO can not receive, transmit, and execute any orders from clients for buying financial instruments. Also, the company cannot advertise itself as an investment service provider or have any relating advertisements.
Furthermore, CySEC stated that the company should mention the suspension of its CIF license on all of its websites. Moreover, the firm must invite clients within the set deadline for compliance, which is until 24 December 2916, to close all open positions related to their contracts. Finally, CySEC said that the firm should return all the funds and profits earned to its clients.
In the official announcement, CySEC stated that FXFINPRO has one month to comply with the mentioned provisions.
AtoZ Forex reached out to FXFINPRO for an official statement, the broker said they're waiting till the suspension ends in one month. They added that: "We're not opening any accounts or performing any trading activities now". Moreover, FXFINPRO confirmed that they are returning the clients' funds. Regarding the continuation of the broker's activities, they said it all depends on CySEC approval.
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