CySEC announces delisting of five firms from Investor Compensation Fund

Maria Nikolova

The firms are delisted because they have lost their Cypriot authorization.

The Cyprus Securities and Exchange Commission (CySEC) today announces that five firms have been delisted from the Investor Compensation Fund. The reason for the delisting is that these firms have lost their Cypriot licenses.

The deleted members are:

  • 1. AMFF Ltd
  • 2. Fidelisco Capital Markets
  • 3. GS Sharestocks Ltd
  • 4. PCM Advisers Ltd
  • 5. UCP Asset Management Ltd

Let’s recall that the first two firms on the list – AMFF Ltd and Fidelisco Capital Markets, have voluntary withdrawn their CIF licenses. The regulator notes that the loss of Fund membership does not mean the loss of covered clients’ rights to indemnification in respect of investment operations carried out before the loss of membership.

In November 2019, CySEC announced that 11 firms were delisted as members of the Investor Compensation Fund.

In March 2019, CySEC unveiled changes to the legal framework governing the operation of the ICF. The reforms envisage calculating members’ annual ICF contributions using a risk-based approach, which takes into account the reliability of statements of eligible funds and financial instruments, the amount of clients’ eligible funds and financial instruments of a respective member and the timing of the payment of the annual contribution.

Under the changes, any provisions in relation to limiting or refunding the contributions of the members that are paid to the ICF pursuant to the New ICF Directive will be removed.

ICF members are required to keep an independently audited and client-segregated minimum cash buffer of 3‰ (3 per 1,000) of their clients’ eligible funds and financial instruments.

The changes envisage no limiting of potential extraordinary contributions by an ICF member in the event of an adverse scenario which requires the ICF to fund compensation due to investors, should the necessary requirements be met.

The new rules apply the discretion provided for in Directive 97/9/EC on the levels of investor compensation such that the maximum limit of compensation coverage equals €20,000 or 90% of the covered investor’s claim, whichever is lower.

The obligation to participate in the ICF applies to all entities providing investment services and ancillary custody services irrespective of whether clients’ funds and financial instruments are held. This means that participation in the ICF is compulsory for Cyprus Investment Firms (CIFs) too.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<