Cypriot regulator withdraws authorization of FX broker UGL Exchange
CySEC is concerned about UGL Exchange’s compliance with the requirements regarding the protection of clients’ money, and concludes that the firm does not fulfill the terms of its operational license.
The Cyprus Securities and Exchange Commission (CySEC) today announces that it has decided to withdraw the Cyprus Investment Firm (CIF) authorisation of UGL Exchange Ltd.
The announcement is made several months after the Cypriot regulator said it suspended the CIF authorization of the FX firm.
CySEC explains that it reached the decision about the withdrawal of UGL Exchange’s license as the regulator was not satisfied with the company’s compliance with article 22(1) of the Law, as to fulfilling at all times the condition of article 17(9) of the Law, as further specified in paragraphs 4 of Directive DI87-01 regarding the protection of clients’ money, and as a consequence it does not fulfill the terms of its operational license.
In addition, CySEC has decided that the company is not complying with articles 92(1) and 93(1) of Regulation (EU) 575/2013 on prudential requirements, in relation to own funds and total capital ratio.
As a result of the withdrawal of its authorisation, UGL Exchange has to:
- Ensure it does not provide investment and ancillary services, other than those that are strictly necessary for the completion of its pending transactions and those of its clients, as per their instructions.
- Publish on its websites an announcement informing about the withdrawal of its license, the procedure to be followed by its clients for the completion of their transactions, the return of their funds and financial instruments, as well as the submission of any complaints.
- Return all funds and financial instruments that belong/amount to its clients, including any profits.
- Examine and resolve all clients’ complaints that have been submitted to them.
- Ensure that it continues to maintain an office and employs all the necessary staff, in order to carry out the tasks mentioned above.
At the moment of this article’s publication, the website of UGL Exchange is not responsive.