CySEC announces launch of payment process by Investor Compensation Fund for ACFX clients

Maria Nikolova

Atlas Capital has not, until today, settled its obligations arising from the investment and ancillary services provided to its clients.

ACFX Failing to Pay Withdrawals

The saga around Atlas Capital Financial Services Ltd, also known as ACFX has seen some development today, as the Cyprus Securities Exchange Commission (CySEC) posted an announcement informing the public of the launch of a compensation payment process by the Investor Compensation Fund for Clients of Investment Firms (ICF).

Atlas Capital’s CIF authorisation has been withdrawn as of February 2017. Back then, CySEC noted the Company’s non compliance with:

  • Section 28(1) of the Law, as it fail to comply with the authorization and operating conditions of:
  • section 18(2)(a) of the Law and paragraph 13, sub paragraphs (2) and (9), of Directive DI144-2007-01 of 2012 for the Authorisation and Operating Conditions of the Cyprus Securities and Exchange Commission of the Cyprus Investment Firms (‘the Directive’), as the Company had failed to establish, implement and maintain effective procedures for the reasonable and prompt handling of complaints received from its clients and for their full investigation.
  • section 18(2)(c) of the Law as, due to the Company’s failure to submit evidence for actions taken, CySEC is not in a position to establish whether the Company has taken all measures necessary to ensure continued and regular performance of its services.
  • section 18(2)(f) of the Law as, due to the Company’s failure to submit evidence for actions taken, CySEC is not in a position to establish whether the Company has effective procedures for identifying, managing, monitoring and reporting of the risks.
  • section 18(2)(j) of the Law and paragraph 18(1)(f) of the Directive as, due to the Company’s failure to submit evidence for actions taken, CySEC is not in a position to establish whether the Company has taken all necessary measures and adequate arrangements to safeguard its clients’ assets.

In today’s announcement, the Cypriot regulator said ACFX has not settled its obligations arising from the investment and ancillary services provided to its clients.

CySEC has ascertained that the company is unable to fulfill its duties towards its clients in the near future, for reasons that do not consist of a temporary lack of liquidity that can be dealt with instantly.

Following this announcement, the ICF. 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. The said publication will be also posted on CySEC’s website.

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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