Two years ago, when the Cyprus crisis culminated and the country’s international lenders imposed an unprecedented haircut on deposits many had predicted the demise of the country as a reliable international business and financial services centre. This was further fuelled by the fact that Cyprus had then become the first eurozone member to impose restrictions on capital flows, introducing control in order to prevent a run on its banks.
Ever since and showing remarkable resilience, the Cypriot economy seems to be recovering faster than expected and it has repeatedly outperformed the forecasts and economic indicators. Therefore, it is no surprise that all capital flow restrictions have now been completely lifted without any negative side effects, since banks did not report any unusual capital flow activity. This means that the country and its economy can safely claim to have returned to financial normality
In the aftermath of the Cyprus crisis the country’s financial services regulator CySEC had also come under fire for not being strict enough with brokers and many voices were disputing its ability to adequately regulate the many forex and binary options brokers operating in its jurisdiction and thus gaining a passport to the entire EU market. Acknowledging that it did have its shortcomings, CySEC has stepped up its pace and concentrated its efforts not just to fully restore confidence in Cyprus, but also to demonstrate that Cyprus remains a prestigious regional business centre.
Demetra Kalogerou, the head of CySEC, had recently stated that “The exercise of effective supervision is considered of paramount importance because it ensures not only the protection of investors but also the healthy development of the securities market, which constitutes a significant pillar of growth for modern economies.” Confident that CySEC is exercising such effective supervision is also pointed to the fact that new applications before CySEC from companies that wish to offer investment and administrative services are rising, arguing that such interest is a clear indication that Cyprus continues to offer significant advantages and constitutes an attractive jurisdiction for investments.
Within this framework of wanting to talk the talk and walk the walk, CySEC has announced its decision to wholly withdraw the Cyprus Investment Firm authorization with number CIF 095/08 of Pulp International Business Ltd, which operates via the domain www.fxpulp.com, due to the Company’s non compliance with sections of the Investment Services and Activities and Regulated Markets Law in relation to clients’ funds and sections of the Prevention and Suppression of Money Laundering Activities Law, in relation to the procedures followed for the prevention of money laundering.
As a result of this decision by the regulator, FXPupl should cease to provide investment and ancillary services and settle all its obligations arising from the services that are no longer allowed to provide or perform within a period of three months. In its relevant announcement, CySEC also informs investors that it was in communication with the person who effectively directed the Company (‘4-eye’) and major shareholder, Mr Said Salem, in an attempt to achieve compliance of the Company with the relevant legislative provisions and to satisfy its clients, which did not conclude and it also names the Company’s other shareholder as being Mr Shaher Hasanain.