November 1, 2019, | AtoZ Markets – CySEC has on Friday posted an update on its website containing information that may be helpful to clients of AFX Capital Markets Ltd. With this update, clients of the brokerage firm can file their complaints against it.
CySEC investigates AFX Capital for alleged client's fund mishandling
As a reminder, on July 17, 2019, CySEC announced the suspension of the Cyprus Investment Firm (CIF) license of AFX Capital Markets.
The suspension of the CIF license of AFX is pursuant to section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 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 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the safeguard of clients’ funds.
The above-alleged violation sparks concern about the risks relating to the protection of the Company’s clients or of the investors. Moreover, the alleged violation also constitutes a threat to the orderly operation and integrity of the market. Shortly after the suspension of AFX’s license, their website of the firm went black. It is not accessible at the time of writing.
CySEC is currently conducting an investigation of the aforementioned alleged violation, which is expected to be completed in due time.
New procedure for the filing complaints against AFX
Today, the Cypriot watchdog has provided information about the procedure for the submission of complaints against AFX.
A Unique Reference Number (URN) is usually required in order to file a complaint with the Financial Ombudsman, which AFX is unable to provide. Hence, CySEC and the FO office have established an exemption to the normal procedure to ensure that clients of AFX are able to submit their complaints without a URN.
Furthermore, CySEC urges AFX clients to remain updated on the status of AFX and any developments, by frequently monitoring CySEC’s website.
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