In a decision taken on 12 June 2015 and announced on the same day the financial markets regulator for Cyprus, namely the Cyprus Securities and Exchange Commission proceeded with the suspension of the authorisation of the Cyprus Investment Firm ‘CommexFX Ltd’.
This company, which holds the CIF license with number 153/11 since 2011, is suspected to have violated certain provisions of the Investment Services and Activities and Regulated Markets Law which is in place in Cyprus. More specifically, according to the CySEC announcement there are suspicions of an alleged violation of section 28(1) of the above mentioned Law, pertaining to CommexFX’s possible non-compliance with the condition of its authorization provided for in section 18(2), paragraphs (i) and (j), of the Law, on ‘Operational requirements – Clients’ funds’, as specialized in Part VI of the Directive DI144-2007-01 of 2012 on relation to ‘Safeguarding of clients’ funds’.
In order to show that it means business and it is determined to adopt a harder stance against brokers and better safeguard the rights of investors, CySEC pointed out that it took the decision to suspend the relevant CIF license due to the fact that the aforementioned alleged violation “may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.”
According to the regulator’s decision CommexFX Ltd was given fifteen days in order to take the actions needed in order to comply with the legal provisions it is alleged to have breached. CySEC also pointed out in its announcement that while the suspension of its authorisation is in force, CommexFX Ltd:
Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law and that it must, if existing clients so wish, without being considered in violation of section 26(5) of the Law to either 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, or to return to existing clients all of their funds and profits earned.