Cypriot regulator suspends authorization of FX broker UGL Exchange

Maria Nikolova

The company is suspected of non-compliance with prudential requirements regarding own funds and capital ratio.

The Cyprus Securities and Exchange Commission (CySEC) today announces that the Cyprus Investment Firm (CIF) authorisation of UGL Exchange Ltd is suspended in whole.

The action is taken pursuant to section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘DI87-05’), as there are suspicions that the company has violated:

  • Articles 92(1) and 93(1) of Regulation (EU) No 575/2013 on prudential requirements regarding own funds and capital ratio,
  • section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’), due to the company’s possible non-compliance at all times with the authorisation condition in section 17(9) of the Law (organizational requirements), as specified in paragraph 4 of Directive DI87-01 of 2018, regarding the safeguard of clients’ funds.

CySEC notes that the alleged violations cause concern and risk relating to the protection of the company’s clients or investors and constitute a threat to the orderly operation and integrity of the market. Within one month, UGL Exchange, previously known as Baynet Ultrasimple Global (Cy) Ltd, has to take actions in order to comply with the aforementioned provisions.

While the suspension of the authorisation is in force, as provided for in section 9 of DI87-05, the company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new client.
  • Advertise itself as a provider of investment services.

UGL Exchange is allowed to complete all its own transactions and those of its clients which are before it, in accordance with client instructions. The company is also permitted to return all funds and financial instruments which are attributable to its clients.

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