CySEC Withdraws Otkritie Capital Cyprus' CIF Licence

Cyprus regulator, the CySEC announced that at its meeting held on December 14, 2020, it decided to withdraw the CIF license of Otkritie Capital Cyprus.

January 06, 2020 | AtoZ Markets – The European investment company Otkritie Capital Cyprus, part of the Russian financial holding Otkritie, voluntarily renounced the CySEC license. The Cyprus Securities and Exchange Commission (CySEC) confirmed that the company has waived its Cyprus Investment Firm (CIF) license and is no longer regulated by this supervisor from December 14, 2020.

Why did Otkritie Capital Cyprus renounce its CIF license?

Recall that Otkritie Capital Cyprus Ltd, registered in Limassol (Cyprus), received a Cypriot license number 069/06 back in 2006. Now the regulator announced that the company had notified him of "a firm intention to waive the CySEC license."

The reasons were not disclosed in more detail, but with some degree of probability, it can be assumed that this step was caused by the sale by the Otkritie holding of its foreign structures (in 2017, Otkritie Capital International Limited (Great Britain) was purchased by the Rossium concern together with Otkritie Capital US Inc. ( USA) and Otkritie Capital (Hong Kong) Limited (Hong Kong) and renamed Sova Capital in early 2018).

The fact is that back in June last year, Otkritie Capital Cyprus turned to its clients and notified them of, in fact, the termination of its activities. At the same time, the investment company announced its decision to revoke the CIF license, and asked clients to close all trading positions and withdraw their funds from trading accounts.

Read also: CySEC Withdraws CIF Authorization of Bogofinance Capital Markets

The company stressed that from this moment (from June 16, 2020), the recruitment of new clients will stop, and the company's current clients will no longer be able to continue trading. The broker then took 4 months to completely terminate any relationship with clients.

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