Cypriot license of Dualix & AGM Markets parent wholly suspended
After several months of pause, the Cypriot authorities is once again flexing their muscles and actively finding compliance irregularities.
The Cyprus Securities and Exchange Commission (CySEC) has wholly suspended the license of Maxigrid Limited (trading as Dualix & AGM Markets) as the company materially contravened its licensing conditions.
The CySEC confirmed it will maintain supervision over the firm until it has taken care of its responsibilities under the suspended license. Earlier in March, Maxigrid was fined €75,000 by the Cypriot regulator for multiple regulatory violations.
According to the CySEC’s manifest, Maxigrid’s CIF approval was temporarily revoked because the company appears to “conduct business and/or to be engaged in the conducting business and/or to facilitate the conducting of business not stated in its authorisation.”
In addition, the regulator further explained that the firm didn’t comply “at all times” with the authorisation conditions in sections “9(2) – suitability of members of the management body, and 11(1)(b) – suitability of shareholder, of the Law.”
Interestingly, the CySEC expressed the same concerns when it decided this morning to “suspended in whole” the license of Maxiflex Ltd (trading as EuropeFX).
Both firms had their UK license lapsed in 2020 after an investigation found Britons were being offered high risk contracts for difference (CFDs) using fake celebrity endorsements on social media. The FCA, however, did not reveal the names of the celebrities used in the fake endorsements.
The City regulator also said these firms failed to pay money owed to investors and charged customers undisclosed fees whilst failing to disclose the risks of trading CFDs.
The FCA told these brands that they are no longer allowed to solicit or take on new clients from the country anymore, while relations with the existing clients must be terminated, and they must be allowed to close their positions and withdraw their funds.
At the time, the CySEC partially suspended license of those firms until they take corrective measures within a set framework; otherwise, it warned additional measures will be taken, such as the imposition of fines and/or even the withdrawal of their licenses.
Maxigrid has 30 days to take the necessary actions to comply with the specified provisions. During this time, they cannot provide any services or enter into a business relationship with any person and take on any new clients.
In addition, the broker is not allowed to execute any orders from clients for buying financial instruments or provide any investment services in or outside of Cyprus.