Cypriot regulator withdraws authorization of Prior Capital

Maria Nikolova

CySEC is not satisfied with the compliance of the firm, formerly known as PriorFX, with Cypriot investment laws.

The Cyprus Securities and Exchange Commission (CySEC) today announces the withdrawal of the Cyprus Investment Firm authorisation of Prior Capital Cy Ltd, formerly known as PriorFX. The decision was made pursuant to article 9(3)(b) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation and to articles 8(1)(c) and 71(6)(c) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).

CySEC explains it 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, 6 and 9 of Directive DI87- 01, regarding the safeguard of clients’ funds, hence meeting the conditions under which its authorisation was granted.

Due to the withdrawal of its authorisation, the company has to:

  • Ensure it does not provide investment and ancillary services.
  • Immediately and without delay, ensure that all references in its websites and anywhere else, relating to the provision/carrying out of investment services/activities, as well as references to its licensing and regulation by the CySEC, are deleted.

CySEC’s investigation into the matters relating to Prior Capital continues.

Also today, the Cypriot regulator said that it has determined that the company, which is a member of the Investors Compensation Fund (ICF), is unable to meet its obligations arising out of investors’ claims and has no early prospect of being able to do so.

Following the initiation of the compensation payment procedure, the I.C.F. will publish, in at least two newspapers of national coverage, an invitation to submit compensation applications, designating the procedure for the submission of the relevant applications, the deadline for their submission and their content, in accordance with Part V of Directive DI87-07 (R.A.D. 76/2019).

All affected clients (covered clients of the company) are invited to study Directive DI87-07 (R.A.D. 76/2019) as well as the information for the submission of compensation applications and take all appropriate actions for the submission of their claims.

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