26 May, AtoZForex, Lagos – CySEC has announced that ACFX license suspension continues. Following up on the series of events leading up to the suspension of ACFX’s Cyprus Investment Firm (CIF) license, the Cyprus Securities and Exchange Commission (CySEC) again announced yesterday that the firm’s license would remain impounded.
The Forex and CFDs broker’s office now runs empty, with only the General Manager Petar Gazivoda and a few other staff staying around in an effort to resolve the issue with the regulator. Some clients still claim that they have not been able to make withdrawals from their accounts, even though the license suspension does not preclude ACFX from processing client withdrawals.
Considering that only the General Manager and a few staff are present at the office, it is likely that this has impacted the withdrawal requests. Not only has the company's office ran empty, based on the information AtoZForex has received from former ACFX employees in Cyprus, the company has fired most of the key personnel or pushed them to resign voluntarily. According to one of the former ACFX employees we have talked to.
ACFX license suspension continues
AtoZForex reported earlier in April that ACFX’s CIF license had been suspended for a month. At the time, CySEC clarified that the ACFX license suspension was due to the fact that ACFX’s parent company, with number 085/07 had been allegedly non-compliant at all times with the financial regulator’s operating conditions and authorization. Some of the issues stated by the regulator includes:
– Continuity and regularity in the performance of investment services
– Effective procedures for identifying, managing, monitoring and reporting of the risks
– Safeguarding of clients funds, of the Law
– Adequate arrangements for the safeguarding of clients funds, of Directive DI144-2007-01 of 2012 of the Securities and - -Exchange Commission for the Authorisation and Operating Conditions of CIFs.
Chain of events
Before the ACFX license suspension, the broker started making headlines when it opened an investigation into the accounts of some Chinese clients. This was due to suspicion of a number of clients to have abused the incorrect swap rates of ACFX. At the time, a spokesperson for the firm stated that:
“Due to recent incidence of clients in China abusing the trading platform in order to benefit from the swap rates on oil contracts, the company has decided to filter out all accounts in order to identify those who abused the system. Due to a large amount of trading accounts being affected this causes a slowdown and delay in the accounting department process.”
Having relieved most of its employees of their work positions, with some others voluntarily resigning, the firm’s operations are basically on halt. There are rumors of the firm seeking acquisition, as it battles bankruptcy. Although the ACFX has not officially stated this as its website remains active.
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