MyFXBook CySEC license renounced

12 July, AtoZForexThe Cyprus Securities and Exchange Commission (CySEC) states its mission as effectively supervising a healthy development of the financial market and investor protection in Cyprus. One of the activities related to that is ensuring that the Cyprus Investment Firms (CIFs) comply with the regulations. Recently, the regulator announced the MyFXBook CySEC license renounced as it was not used during 12 months from the date of issue.

Why was the MyFXBook CySEC license renounced?

MyFXBook is an online social community and an automated analytical instrument designed for the Forex trading. It enables its users to track, compare, share and analyze their trading activities. It currently supports over 100 brokers and most famous platforms.

In 2014 the community portal obtained a CIF license as a new entity MyFXBook Europe Ltd. The license included “portfolio management” and “reception and transmission of ‎orders”, which the company needed to carry out social trading activities. According to the watchdog, the firm’s CIF license was revoked by the CySEC because the company did not use it within 12 months after the license was issued.

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What does the CySEC’s regulation say

According to the CySEC’s rules and regulations, the firm who obtained the CIF license is obliged to start providing investment services during first 12 months after the license was issued. If the firm did not act so, the CIF license will automatically lapse. This action was a considered as a precautionary measure that CySEC took after the British Financial Authority (FCA) stated that it is searching for ways to regulate the trade leaders as financial advisers.

The lapse is considered to be an “automatic” act rather than a disciplinary action taken by the regulator. However, the CySEC has announced this update about the regulatory status of the firm only on July 7, 2016, which is 8 months later than then MyFXBook CySEC license renounced.

See also: South African FSB Outlook Forex Traders warning

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