More brokers say Goodbye to their CySEC authorizations
The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of RMG Holding Ltd and ED&F MAN Capital Markets CEEMA Ltd.
According to two regulatory announcements, both firms had their CIF authorizations withdrawn on its own request and the surrender of their respective license was entirely voluntary, not the result of any regulatory action taken by CySEC.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.