Cypriot regulator CySEC has decided to finally wholly withdraw ACFX CIF license. Such decision has been reached after over a year of temporary suspensions.
Breaking: CySEC withdraws ACFX CIF license
The firm was running two brands before it got its trading license suspended by the Cypriot regulator. Both of the brands, namely ACFX and ACFS, have not been operating since last year’s April. Such news came after CySEC has issued a number of temporary license suspension notes for the brokerage.
Reportedly, the permanent ban of the authorization of Atlas Capital Financial Services is highly unbeneficial for clients. The official CySEC document is stating:
The Cyprus Securities and Exchange Commission (‘CySEC’) announces that, on its meeting of 13th February 2017, has decided, pursuant to sections 25(1), paragraphs (b) and (c), and 26(4)(b) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), to wholly withdraw the Cyprus Investment Firm authorization with number CIF 085/07 of Atlas Capital Financial Services Ltd.
Moreover, as per the Cypriot regulator, the firm did not possess enough funds in its coffers to properly cover the deposits of its clients.
Long story short...
Almost a year ago, ACFX started an investigation into the accounts of its Chinese clients. The CySEC regulated foreign exchange broker has sent out a letter to its Chinese clients, clarifying that their trading accounts will be screened, which results in possible ACFX Chinese withdrawals delays.
Later on, in April 2016, CySEC has issued an ACFX CIF license suspension directed on the CIF’s parent company Atlas Capital Financial Services Ltd. That time, Cypriot regulator gave the firm one month to remedy the suspension.
Furthermore, in the end of May 2016, CySEC has announced that ACFX CIF license suspension continues. Afterward, in September 2016 the regulator has extended the suspension of the license. Also, it was already considering the permanent suspension of the license of the firm.
Now, finally, the CySEC decided to withdraw the trading license of Atlas Capital Financial Services.
What about the clients of ACFX?
Since nearly a year ago, when the first troubles with ACFX started, the clients of the firm are still waiting for the recovery of their funds. The Cypriot regulator has already stated that the firm did not operate in accordance with the region’s securities law. Moreover, ACFX did not adopt proper procedures to handle client complaints. It also did not take all possible measures to assure regular and adequate performance of its services.
Currently, the Cypriot watchdog stresses that the firm now has three months to settle its customer obligations.
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