CySEC suspends CIF license of Fenix Capital Markets Trading
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A Cyprus Investment Firm (CIF) purporting to offer brokerage and investment advice services has had its authorization withdrawn.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.
