Cypriot Investors Compensation Fund withdraws membership of Whotrades and MGTM Financial Services
The ICF decision follows CySEC’s withdrawal of the Cyprus Investment Firm authorisation of the two companies.
The Cyprus Securities and Exchange Commission today announces that the Investors Compensation Fund (ICF), pursuant to paragraph 6 of Directive DI87-07 for the Operation of the Investors Compensation Fund (‘the Directive’), has withdrawn the ICF membership of the following members:
- Whotrades Ltd, and
- MGTM Financial Services Ltd.
The regulator notes that, in accordance with paragraph 6(3) of the Directive, the loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients.
The withdrawal of the ICF membership follows CySEC’s decision to withdraw the Cyprus Investment Firm (CIF) authorisation of Whotrades Ltd and MGTM Financial Services Ltd.
At its meeting held on January 27, 2020, it decided, pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05, CySEC decided to withdraw the CIF license of Whotrades Ltd.
The regulatory move is in line with with company’s decision to expressly renounce its CIF authorization.
CySEC’s website shows that Whotrades was formerly known as FINAM. The company was authorized to provide, inter alia, foreign exchange services.