CySEC removes Brokereo from compensation fund following CIF license withdrawal
As CySEC explained, Brokereo clients can still claim compensation in relation to investment operations carried out until the loss of membership status.
The Cyprus Securities and Exchange Commission has announced that Neo Premium Investments (NPI) Ltd, the entity behind FX/CFD broker Brokereo, has been removed as a member of the Investors Compensation Fund (ICF).
“The loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients,” the regulator stated.
Brokereo withdrew from CySEC license three months ago
Neo Premium Investments has been withdrawn from its ICF membership following its own request to lose Cyprus Investment Firm (CIF) authorization. CySEC agreed to take away Brokereo’s license in November 2023.
The broker is no longer authorized to provide financial or ancillary services in the European Union. CySEC gave the firm three months from that date to settle its obligations arising from the investment services that lapsed, during which time it remained under the Cypriot watchdog’s supervision, until now.
Under the island country’s regulatory framework, withdrawing CIF licensees must return all outstanding balances to its clients and handle all of their complaints. In addition, they must confirm to their external auditor that they do not have any pending obligations and must include details of each of the company’s clients.
Brokereo clients can still claim compensation for operations prior to withdrawal
At the time of withdrawal, Brokereo.com displayed the following message, instructing clients on how to proceed with refunds and claims.
“We would like to inform you that Neo Premium Investments Ltd. (the owner and operator of the domain name Brokereo) has decided to voluntarily renounce its CIF license. This means that the company no longer provides/carries out investment services/activities and/or enters into any business transaction with any person nor does it accept any new clients.
As per the above and in accordance with our Terms & Conditions, the Company would like to inform that all open trades have been closed on 31st of October 2022 and all Neo Premium Investments (NPI) Ltd. Clients’ accounts have also been closed. The Company took all necessary actions to refund all remaining balances to its Clients. Any remaining Clients’ funds that have not been refunded by 26th of January 2023, will be transferred to Investor Compensation Fund of CySEC from where can be claimed.”
As CySEC explained, Brokereo clients can still claim compensation in relation to investment operations carried out until the loss of membership status.
