The Cyprus watchdog, the Cyprus Securities and Exchange Commission (CySEC) has announced today that it has decided on 12 February 2016 to suspend the authorisation of the Cyprus Investment Firm ‘Trademarker (Cyprus) Ltd’, with number 151/11.
According to the regulator the decision for the suspension was reached at pursuant to section 26(2) of the Cyprus Investment Services and Activities and Regulated Markets Law of 2007 and more specifically because there are suspicions of an alleged violation of section 28(1) of the Law, due to the Company’s possible non-compliance at all times with the condition if its authorization provided for in sections 12, 13 and 18(2)(c) of the law, which pertain to the persons who effectively direct the business of a CIF, the CIF shareholders and organisational requirements, respectively.
The CIF Trademarker offers its services via the brand names of fx broker SkyFX (www.skyfx.com) and binary options broker Capital Option. The regulator proceeded with the suspension of the relevant CIF license and has given the company 15 days during which it has to take actions in order to comply with the alleged violations it is suspected to have committed, because it is worried that the said violations may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.
- According to the CySEC announcement, while the temporary suspension of the authorisation is in force, the Company:
- Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
- Must, if existing clients so wish, without being considered in violation of section 26(5)of the Law,:
- Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
- Return to existing clients all of their funds and profits earned.
This is not the first time that CySEC imposes sanctions on the particular CIF, since Trademarker was also fined in May 2015 for the amount of EUR 20,000for several legal provisions’ violations, including its failure to ensure the appropriateness of its shareholders.
Interestingly, the owner of SkyFX and the person behind the Trademarker group is believed to be Aviv Talmor, who also owns the brokerage UTrade that had recently faced ponzi scheme allegations from Israeli lawmakers, who also decided to force a suspension of its operations. When the decisions of regulators in different jurisdictions seem to convergence then it is most certain that trouble is ahead for the firms involved.