The Cyprus Securities and Exchange Commission has announced that the authorisation of the Cyprus Investment Firm AFX Capital Markets Ltd. is suspended in whole, as there are suspicions of an alleged violation due to the company’s possible non-compliance at all times with the authorisation, regarding the safeguard of clients’ funds.
The above decision was reached 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 ten (10) days, the AFX Capital Markets Ltd. has to take actions in order to comply with the aforementioned provisions.
For as long as the suspension of the authorisation is in force, the company is not permitted to provide/carry out investment services/activities as well as enter into any business transaction with any person and accept any new client. It is also not allowed to advertise itself as a provider of investment services.
However, the broker provided this is consistent with the wishes of its existing clients, may proceed with completing all its own transactions and those of its clients which are before it, in accordance with client instructions. Also, it should return all funds and financial instruments which are attributable to its clients.
The Cyprus Securities and Exchange Commission, better known as CySEC, is the financial regulatory agency of Cyprus. It supervises and controls the operation of the Cyprus Stock Exchange, grants operation licenses to investment firms, including investment consultants, brokerage firms, and brokers, impose administrative sanctions and disciplinary penalties. You can read the detailed article about the Cyprus Securities and Exchange Commission here.