Several months has passed, prolonging the uncertainty about UBFS Invest's suspended license. Finally a new update got released, as CySEC withdraws UBFS Invest CIF license.
14 December, AtoZForex – After months of extending the license of Forex Broker UBFS Invest, the Cyprus Securities and Exchange Commission (CySEC) has announced that it will withdraw the broker’s license. The local regulator held a meeting on the 28th of November 2016 and decided upon Moneychoice Brokers Ltd. fate, which is the parent firm of UBFS Invest. /Moneychoice license according to the meeting which was held
Reasoning for UBFS Invest license withdrawal
CySEC withdraws UBFS Invest CIF license and mentions in its official announcement that the reason for such an action deals with the broker’s non-compliance with the following regulatory sections:
- Section 28(1) of the law for failure to comply at all times with the authorisation and operating conditions of section 18(2)(j) of the Law. Also, the broker did not do any adequate arrangements to safeguard it clients’ rights.
- Section 67(1) of the law, as its own funds are negative.
- Article 92(1) of the European Regulation 575/2013, as its capital ratio is negative.
Furthermore, after the watchdog suspended the broker’s CIF license, the firm should cease to provide investment and ancillary services. Additionally, UBFS should settle its obligations emerging from the services that have no authority anymore to perform. The company should apply this within a period of three months.
Moreover, the watchdog called the company to proceed with changes in its website. These changes include the removal of any references regarding authorisation and supervision of the firm by CySEC.
Why did CySEC suspend UBFS’s license initially?
The initial suspension was reported as the regulator believed UBFS was not operating in accordance with the Cyprus’ law of protection of client funds. Additionally, the sum of the broker’s capital requirements seemed to be bigger than the firms’ own funds.
Moreover, the total capital ratio was less than the required ratio by the watchdog. CySEC considered these breaches could jeopardize the interests of broker’s clients and interface with the capital market operation. Hence, the watchdog suspended UBFS’s license.
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