CySEC suspends CIF license of Fenix Capital Markets Trading

Maria Nikolova

The suspension reflects alleged violations of Τhe Investment Services and Activities and Regulated Markets Law of 2017.

A Cyprus Investment Firm (CIF) purporting to offer brokerage and investment advice services has had its authorization withdrawn. Today, the Cyprus Securities and Exchange Commission (CySEC) announces that the authorisation of Fenix Capital Markets Trading Ltd (number 308/16), is suspended in whole.

The suspension is made in line with section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 and section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation, as there are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorisation condition in section 9(16) (management body) and in section 10 (governance arrangements) of the Law.

CySEC notes that the suspension decision was made as the aforementioned alleged violation causes concern and risk relating to the protection of the company’s clients or of the investors and constitutes a threat to the orderly operation and integrity of the market.

Within 15 days, Fenix Capital Markets Trading Ltd has to take actions in order to comply with the aforementioned provisions. While the suspension of the authorisation is in force, the company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new client.
  • Advertise itself as a provider of investment services.

Fenix Capital Markets Trading, provided this is consistent with the wishes of its existing clients, is allowed to proceed with the following actions:

  • Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
  • Return all funds and financial instruments which are attributable to its clients.

The most recent suspension of CIF license preceding that of Fenix Capital Markets Trading concerns IGM FOREX LTD. In July this year, CySEC said that the authorisation of IGM FOREX LTD, was suspended in whole, due to suspicions of an alleged violation of:

  • section 10(1) of The Investment Services and Activities and Regulated Markets Laws of 2007 to 2016 (L.144(I)/2007) and Article 93(1) of Regulation (EU) 575/2013 (Own funds), and
  • Article 92(1) of Regulation (EU) 575/2013 (Capital adequacy ratio).

That decision was reached due to the fact that the aforementioned alleged violations cause concern and risk relating to the protection of the Company’s clients or of the investors and constitute a threat to the orderly operation and integrity of the market.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<