CySEC suspends IGM Forex CIF license, citing a number of violations. The Cypriot regulator has noted that IGM Forex has 15 days to take action in order to comply with the provisions.
23 July, AtoZ Markets – The primary financial markets regulator in Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has made an announcement on its website regarding one of the market participants.
CySEC Suspends IGM Forex CIF License
The Cypriot regulator has informed the public that the authorization of the Cyprus Investment Firm (CIF) IGM FOREX LTD is suspended. The official announcement on the regulator’s website states:
“The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm IGM FOREX LTD (‘the Company’), number 309/16, is suspended in whole, pursuant to section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 (L.87(I)/2017) and section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation.”
The Cypriot regulator has further explained that the entity in question has violated a number of law provisions:
1. section 10(1) of The Investment Services and Activities and Regulated Markets Laws of 2007 to 2016 (L.144(I)/2007) and Article 93(1) of Regulation (EU) 575/2013 (Own funds), and
2. Article 92(1) of Regulation (EU) 575/2013 (Capital adequacy ratio).
What now for IGM Forex?
The regulatory decision has been taken based on the fact that the violations cause concern and risk related to the protection of the company’s clients. The risks are also related to the investors and constitute a threat to the organized operation and reliability of the financial market.
The CySEC has noted that IGM Forex has 15 days to take action in order to comply with the provisions. In the meantime, while the license suspension is in force, the company is prohibited to
1.1 Provide/carry out investment services/activities.
1.2 Enter into any business transaction with any person and accept any new client.
1.3 Advertise itself as a provider of investment services.
In addition, the watchdog has noted that the company is still allowed to complete all its own transactions and those of its clients in accordance with client instructions. The company also can return all funds and financial instruments that are attributable to its clients.
We have reached out to the company for further comments and are currently awaiting an answer.
Think we missed something? Let us know in the comments section below.