Libertex responds to CySEC’s suspension of its CIF license

abdelaziz Fathi

Indication Investments Ltd, the operator of FX retail brand Libertex, has briefly responded to the CySEC’s decision to suspend its Cyprus Investment Firm (CIF) license.

FinanceFeeds received the following comments from Giorgos Stylianou, Executive Director of Indication Investments Ltd.

“We were just made aware of the CySEC’s decision regarding our license. We are fully cooperating with the CySEC on all aspects and firmly maintain that we have been and continue to be in full compliance of all regulations. Our immediate focus is on our customers, ensuring that they are not adversely affected by the situation, while we work with the regulator to recall the suspension.”

CySEC imposed the punitive measures due to several alleged violations. The watchdog considered these breaches could jeopardize the interests of broker’s clients or more generally the regular operation of the capital market. Hence, the CySEC suspended Indication Investments’ license.

More specifically, the Cypriot regulator referred to violations of legal provisions concerning the broker’s CIF authorization and organizational requirements.

The CySEC has also referenced ESMA’s temporary intervention powers as Indication Investments seemingly violated certain restrictions on the marketing, distribution, and sale of CFDs to retail clients.

In addition, the Cyprus watchdog said Indication Investments “does not appear to provide information, including marketing communications, to its clients or potential clients that is fair, clear and not misleading.”

Indication Investments is regulated by the CySEC and has therefore to comply with the Cyprus regulation in order to maintain its CIF trading license that enables the broker to offer its services across Europe.

CySEC ordered the company to take corrective measures within a set framework; otherwise, additional measures will be taken, such as the imposition of new fines and/or extending the suspension of their licenses.

In the meantime, Indication Investments has to upload notices regarding the suspension of its license onto all of its sites, though the company has yet to comply.

During this time, the broker is not allowed to provide its services, enter into a business relationship or take on any new clients.

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