29 June, AtoZForex – The Cyprus Securities and Exchange Commission (CySEC) has previously suspended authorization of the Cyprus investment firm UBFS Invest on 27th of May of this year due to multiple violations. Today the regulator announced that the UBFS Invest license continues to be suspended.
Previous suspension
The UBFS Invest provides financial services related to Forex market for individual and institutional customers. Being powered by Moneychoice Brokers Ltd, the firm offers to portfolio management and broker service for account holders.
UBFS Invest had its license previously suspended because of failing to implement proper protection measures towards clients’ funds. Another reason the regulator gave - the assets of the broker were less than the sum of its fund requirements as well as having a total capital ratio less than regulation requires.
UBFS Invest license continues to be suspended: why?
Following its previous announcement, the CySEC issued a notice earlier today about its decision regarding the authorization of the broker. According to the decision, the UBFS Invest License continues to be suspended due to violations of Investment Services and Activities and Regulated Markets Law of 2007. The allegations include non-compliance with the requirements for the authorization, more specifically lack of proper protection for the client’s funds. Similarly to the previous announcement, the broker alleged to lack funds to match the sum of its capital requirements. Additionally, the total capital ratio of UBFS Invest is less than it should be according to Regulation.
The regulator explained its decision to continue license suspension as following:
“The above decision was reached due to the fact that the aforementioned alleged violations may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.”
What is next for UBFS Invest?
Currently, the company is asked to take measures comply with the decision within one month. From now on the brokerage does not have a right to:
- enter into new business relationships or acquire new customers
- work with any orders from customers which includes receiving, transmitting and executing the orders
- provide its services within Cyprus or outside
- advertise itself as an investment firm
The UBFS Invest should close any existing open positions related to customer’s contracts (on time or earlier if client wishes so) and should return to all clients their funds according to their requests. Naturally, the broker should announce this decision on all of its websites. Right now if you go to the web page of UBFS Invest you will see a clear announcement of license suspension from 27th of May. However, it should be updated with most recent CySEC decision regarding UBFS Invest.
Think we missed something? Let us know down in the comments section.