Amid increasing number of scamming and cloning companies that claim they obtain licences from financial regulators, CySEC finds itself facing challenges in observing consumer’s rights.
November 22, 2018 AtoZ Markets- The Cyprus Securities and Exchange Commision (CySEC) has issued a new warning, in which it said that ECN Capital Ltd, was did not obtain a licence from the regulator for running its business.
“The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform investors
that the website www.ecncapital.com (ECN Capital), does not belong to an entity which
has been granted an authorization for the provision of investment services and/or the
performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017”, said CySEC in its post.
ECN Capital, alleges on its website that it is a forex broker, claiming that it was established by Swiss capital market experts in 2011, referring to 15 years of experience in the industry.
ECN claimed on its website as well that it is associated with Moslok Ltd, which has a registered office at Spyros Kyprianou Street, 4004, Limassol, Cyprus.
CySEC advised investors to always consult with it before “conducting
business with investment firms”, for the regulator to “ascertain the entities which are licensed to provide investment services and/or investment activities.”
…. And suspends the operations of PCM Advisers Ltd for customer protection purposes
In parallel, CySEC has announced as well suspending the CIF licence of PCM Advisers Ltd “in whole”, for charges of violating the regulatory lables.
“The Cyprus Securities and Exchange Commission announces that the authorisation of
the Cyprus Investment Firm PCM Advisers Ltd (‘the Company’), number 062/06, is
suspended in whole, pursuant to section 71(6)(c) of Τhe Investment Services and
Activities and Regulated Markets Law of 2017 (‘the Law’) 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) the Law due to the Company’s
possible non-compliance at all times with the authorisation condition in section
11(1)(b) of the Law (Suitability shareholders).”, said CySEC in a post published on Nov. 20th.
The regulator said in the post that the decision was taken due to concerns that PCM might have posed a risk to the consumer in its law violation, for which it was forbidden from carrying out any business for as long as the suspension of the licence is in force, accepts any new clients, or advertises itself as a service provider. The company was allowed though to finish any on-going operations with its clients, should the latter wished, or returning the funds and financial instruments to them.
It is worth mentioning that aforementioned regulator has issued many warnings recently, with regard to several firms that operated without a licence, or cloned other registered companies to lure unexperienced investors in dealing with them, for scamming them probably.