Following a series of Best Choice FBC Ltd's license suspensions, Cypriot regulator went ahead and canceled the trading license of the entity. Why Did CySEC Withdraw BCFX CIF License?
6 February, AtoZForex – The key financial regulator of the Cyprus, Cyprus Securities and Exchange Commission (CySEC), has made an announcement on its website. The Cypriot watchdog has informed the public that it has decided to withdraw the Cyprus Investment Firm (CIF) financial services license of Best Choice FBC Ltd.
Initial Suspension of CySEC BCFX License
Best Choice FBC operates retail Forex broker BCFX Broker online via bcfxbroker.com. It also owns numerous other Forex brands, such as FinFX.
It is not the first time we hear from CySEC about BCFX – back in 2016, the Cypriot regulator has suspended the license of the company. That time, the Cypriot financial regulator has suspended BCFC CySEC license, due to suspicions of possible non-compliance of alleged violations of the following sections:
- Section 28(1) of the Law, due to the Company’s possible non-compliance, at all times, with the condition if its authorization provided for in section 12 (persons who effectively direct the business of a CIF)
- Section 13 (CIF shareholders)
- Section 18(2)(j) of the Law and paragraphs 18(1)(f) and 20(1) of Directive DI ΟΔ144-2007-01 of 2012 (protection of clients’ funds).
Based on these alleged violations, CySEC has reached its decision to suspend BCFX CySEC License. As the Cypriot regulator believes that these violations may endanger BCFX’s clients’ interest and affect the operations of the capital market.
Why Did CySEC Withdraw BCFX CIF License?
Later on during the same year, the CySEC has reported that the license of Best Choice FBC Ltd (BCFX) remains to be suspended. The license suspension was extended because of the non-compliance and alleged breach of section 28(1) of the law, non-compliance with the section 12, 13 and section 18(2) related to the protection of clients’ investments.
In December 2016, the Cypriot regulator again has extended the license suspension of Best Choice FBC Ltd. According to the report from CySEC, while the license was still suspended, the broker was not allowed to engage in business relationships with any individual as well as attract new clients. The firm could not receive, transmit or execute any orders from clients for acquiring financial instruments. It was also not authorized to provide any investment services in Cyprus or overseas.
As the end note to the story, CySEC has withdrawn the CIF license of BCFX due to non-compliance with:
- Section 12(1) of the Law, as Mr Gyorgy Miterli, proposed non-executive director of the Company, is not of sufficient good repute,
- Section 13(1) of the Law, as Mr Gyorgy Miterli, sole shareholder of the Company, is not suitable.
The regulator notes that now the firm has to cease to provide all services and settle the obligations arising from the services within a period of 3 months.
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