CommexFX license still suspended by CySEC

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CySEC suspends another CIF license
CySEC suspends another CIF license

Cyprus based and regulated broker CommexFX continues to be in trouble with the local regulator CySEC and it appears that is future may be bleak. As previously reported on binaryoptionswire.com, the Cypriot watchdog first decided the temporary suspension of the CIFs license due to alleged breaches and violations of the pertinent legislation on 12 June. The suspension was subsequently renewed after two weeks, while in an announcement dated 6 August, CySEC makes known that:

“Following previous announcements dated 12 June 2015 and 2 July 2015, the Cyprus Securities and Exchange Commission (‘CySEC’), would like to inform the public that, on its meeting dated 27 July 2015, decided to suspend afresh the authorisation of the Cyprus Investment Firm ‘CommexFX Ltd’ (‘the Company’), with number 153/11, pursuant to section 26(1) of the Investment Services and Activities and Regulated Markets Law (‘the Law’), in order to examine whether is justified to withdraw, or not, the CIF authorisation of the Company, pursuant to section 25(1) of the Law, due to:

– an alleged violation of section 28(1) of the Law, for the non compliance by the Company with the requirements for authorisation as referred to in sections 12 (persons who effectively direct the business), 13 (shareholder suitability) and 18 (organisational requirements) of the Law, and

– serious infringements by the Company relating to the operating conditions and obligations of CIFs pursuant to the Law and the Directives (see CySEC Decision 6 July 2015).”

According to the same announcement CySEC was compelled to take this decision because it considers that “any continuation by the Company of its operation may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.” Moreover, the watchdog clarifies that “the suspension of the Company’s CIF authorisation is in force until CySEC reaches a decision as to whether to withdraw, or not, the CIF authorisation.”

Finally, the Cypriot regulator points out that “while the suspension of the authorisation is in force, CommexFX Ltd:

  1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
  2. Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:

2.1. 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.

2.2. Return to existing clients all of their funds and profits earned.”

Visiting the website of CommexFX reveals that besides a flashing notice that momentarily appears on the screen saying that it is temporarily suspended for 15 days, before disappearing into oblivion, the site seems otherwise to be up and running, while, interestingly enough, it also contains a link to CySEC’s website where the announcement concerning CommexFX is posted.

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