CySEC explains that the withdrawal reflects the company’s decision to renounce its CIF authorization. AMFF decided last year to wind down the operations of its retail brokerage.
November 22, 2019, | AtoZ Markets – Cyprus investment firm AMFF Ltd has decided to give up its CySEC CIF authorization. The Cyprus Securities and Exchange Commission (CySEC) made this announcement on November 21.
AMFF gives up CySEC CIF authorization as it is no longer necessary
According to the Cypriot regulator, the withdrawal is in line with the company’s decision to renounce its authorization. The company’s decision is not, however, related to any regulatory action.
The company moved with this step by itself as the license is no longer necessary since the group decided last year to wind down the operations of its retail brokerage service. AMFF also abandoned its binary options business, which it had provided through three now-defunct domains www.faceoption.com, www.moneotrade.com and www.chartoption.com.
Cyprus was actually ahead of the game when it came to regulating financial betting. This includes offering binary options to retail investors mainly from other EU countries. Following the ESMA measures, however, there are no companies offering binary options products in Cyprus today. Some have simply shut down and others opted to offer FX, CFDs and related business instead.
AMFF must repay all outstanding balances
While CySEC did not give any specific reason for its decision, the watchdog will continue overseeing the financial service company until it has taken care of its responsibilities arising from holding a license.
As of this date, AMFF Ltd is no longer licensed and regulated by CySEC. Further, the company will not be able to provide financial or ancillary services to Cypriot residents, according to the same CySEC announcement.
CySEC had given AMFF Ltd three months to settle its obligations arising from the investment services that also lapsed. During this period, the company will remain under the supervision of CySEC.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, AMFF Ltd must provide a confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients.
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