More brokers say Goodbye to their CySEC authorizations

abdelaziz Fathi

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of RMG Holding Ltd and ED&F MAN Capital Markets CEEMA Ltd.

According to two regulatory announcements, both firms had their CIF authorizations withdrawn on its own request and the surrender of their respective license was entirely voluntary, not the result of any regulatory action taken by CySEC.

Founded in 1995, RMG Holding Limited provides services on financial markets including portfolio management, securities brokerage, custody services and emerging market funds.

A visit to the broker’s website reveals that RMG has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC. The company has also published the following statement to notify clients about the new changes.

“We regret to inform that after a careful review of our business we have decided to discontinue our services and to voluntary renounce our CIF authorizations.”

However, this has yet to be updated to reflect the final withdrawal of its CIF license.

ED&F Man Capital Markets is a global financial brokerage that operates as the trading business and the financial services division of ED&F Man Group. The company offers direct access to global markets across a broad range of asset classes, from metals to agricultural and soft commodities, from forex trading to fixed income. The brokerage requested the surrender of the license solely as a company decision, while it remains unclear what was its initial reason.

Although the regulator did not state why RMG and ED&F decided to say goodbye to their Cypriot identity, it has recently seen many regulated brokers opt to voluntary surrender their license.

The exact reasons leading up to this decision remain unclear, but CySEC will certainly maintain supervision over the companies until they have taken care of its responsibilities under the license.

Under the Cypriot regulatory framework, each company must return all outstanding balances to its clients and handle all of their complaints. In addition, RMG and ED&F must provide a confirmation from their external auditor that they don’t not have any pending obligations and must include details of each of the company’s clients, according to the same CySEC announcement.

The regulator often gives the broker three months from that date to settle its obligations arising from the investment services that also lapsed, during which time it remains under the Cypriot watchdog’s supervision.

Read this next

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

Inside View

ISDA says US Basel III “endgame” to heighten market risk capital

ISDA further explained that, by requiring banks to hold additional capital that is misaligned with levels of risk, the proposal would significantly reduce capital market access for US end users and businesses, restrict the ability of businesses to hedge exposures to changes in commodity prices, and increase the cost of everyday consumer goods, including food and gasoline.

<