CySEC amends procedure for filing complaints against AFX Capital Markets

Maria Nikolova

CySEC and the Financial Ombudsman office have established an exemption to the normal procedure to ensure that clients of AFX are able to submit their complaint.

The Cyprus Securities and Exchange Commission (CySEC) has earlier today posted a brief announcement on its website containing information that may be helpful to clients of AFX Capital Markets Ltd.

The regulator reminds the clients of AFX, that the firm’s authorisation has been suspended amid suspicions of an alleged violation of section 22(1) of the Law due to the AFX’s possible non-compliance with the authorisation condition in section 17(9) (organisational requirements) of the Law at all times, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the protection of the clients’ funds.

CySEC is currently conducting an investigation of the above alleged violation, which is expected to be completed in due time.

Importantly, CySEC provides information about the procedure for the submission of complaints against AFX.

A Unique Reference Number (URN) is usually required in order to file a complaint with the Financial Ombudsman, which AFX is unable to provide. That is why, CySEC and the FO office have established an exemption to the normal procedure to ensure that clients of AFX are able to submit their complaint without a URN.

Shortly after the suspension of AFX’s license in Cyprus, the website of the firm has gone black. It is not accessible at the moment.

In the UK, AFX Markets went into administration, with a recently published report by the administrators showing a gap in client funds. Information provided by AFX to the Financial Conduct Authority on July 23, 2019, indicated that the company held £7.8 million in client money with 1,025 live customers. On August 12, 2019, the company notified the FCA that there was only £458,697 held in their UK bank accounts. Thus, there is a deficit of more than £7.3 million.

Since their appointment, the administrators have sought the assistance of the directors of AFX but requests for important information to assist the administrators remain outstanding.

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