Cypriot regulator suspends CIF authorization of FX broker Belight Capital Group
The company, which trades as BelightFX, does not seem to have provided investment services during the last six months.
The Cyprus Securities and Exchange Commission (CySEC) today announces the suspension in whole of the Cyprus Investment Firm (CIF) authorisation of Belight Capital Group Ltd. In taking this action, the regulator has exercised the power granted to it under Article 70(1)(f) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).
The regulator explains that decision for the license suspension was made as it has suspicions of the company allegedly violating:
- 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 Law , due to the Company’s possible non-compliance at all times with sections 9(16) of the Law in relation to the obligations concerning its board of directors, and 17(1) and 17(2) of the Law, as specified in article 21(1)(d) of Regulation 2017/565, regarding its organizational requirements.
Furthermore, the company, which is operating as BelightFX, does not seem to have provided investment services during the last six months.
The above decision was reached as the aforementioned 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 15 days, Belight Capital Group has to take actions in order to comply with the aforementioned provisions. While the suspension of the authorisation is in force, 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.
The company, in case this is consistent with the wishes of its existing clients, may complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
The company is also allowed to return all funds and financial instruments which are attributable to its clients.
About a week ago, CySEC announced the suspension of the CIF authorisation of UGL Exchange Ltd.
The action was 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.
