26 November, AtoZForex.com, Lagos – Following the license termination of the FX Pulp license by the Cyprus Securities and Exchange Commission (CySEC), the regulator has now notified the former clients of the now defunct FX broker of procedures to be taken in the aftermath of the firm’s demise.
Amongst other things, CySEC has announced that the FX Pulp clients compensation starts in accordance with the procedure of the investor compensation fund to former clients of the firm. The procedure will be detailed in newspapers of national coverage, carrying an invitation towards the Company’s covered clients, to submit their claims against the company in respect of the covered services. The statement will specify the procedure for submitting the relevant applications, the submission deadline and their content. The said publication will be posted on the website of the CySEC as well.
Cause of license termination
Reportedly, FxPulp’s issues with the regulator were based on suspicions of violating the proper code of conduct, which are outlined below:
- Operational requirements – Clients’ funds and Safeguarding of clients’ funds.
- Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007.
The licensing termination case of FxPulp International Ltd. started a few months ago, back on the 16th of February, when CySEC imposed the firm with a temporary license revocation. It came to the attention of the Cypriot regulator, after suspicious of Pulp International Ltd. defied the proper code of conduct. CySEC investigated the case and eventually find out that the brokerage did not comply with the Prevention and Suppression of Money Laundering Activities Law, as well as defied several laws relating to the proper conduct of client’s funds.
Shareholders' fine
The shareholders of FX Pulp namely Mr Said Salem, Mr Shaher Hasanain were also recently hit with administrative fines by the regulator. This was due to the fact that all effort to communicate with the senior management and main shareholder of the Company, Mr. Said Salem, in a bid to secure the Company’s compliance with the provisions of the legislation and the fulfilment of the clients’ claims had proven unsuccessful.
AtoZ Forex will continue to provide updates on the situation as the matter unfolds.
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