The Cyprus Securities and Exchange Commission ( CySEC ), the financial regulatory agency of Cyprus, on Thursday announced that it has completely withdrawn the Cyprus Investment Firm (CIF) License of Maxiflex Limited.
The market regulator reached the decision after it came to the conclusion that Maxiflex had failed to comply with Article 22(1) of CySEC‘s law, in fulfilling the condition of article 17(9) of the Law at all times, as this is highlighted in paragraphs 4(1) and 6(1) of the Directive DI187-01 for the Safeguarding of Client Assets, Product Governance Obligations and Inducements, with connection to the safeguard of clients’ funds.
In October last year, CySEC suspended Maxiflex‘s license after the company was alleged to have violated the ’Investment Services and Activities and Regulated Markets Law‘, which constitute a threat to the market’s integrity.
After thorough investigations, CySEC has wholly withdrawn the companys operating license. As a result, Maxiflex Ltd has been directed to:
Not provide or carry out any investment services or activities;
Not enter into any business transaction with any person/client;
Immediately, and without delay, ensure that all references in its websites and anywhere else, with regards to the provision/carrying out of investment services/activities, as well as references to its licensing and regulation by the CySEC, are deleted.
Safeguarding Capital Markets
That is the latest license withdrawal executed by CySEC. Last month, the watchdog regulation withdrew the Investors Compensation Fund (ICF) membership of SonaFX operator Sonaf Business and Belight Capital Group. In September last year, the regulator withdrew the Cyprus Investment Firm (CIF) license of London Capital Group (Cyprus) Ltd., citing several violations of mandatory compliance requirements.
The list is endless. CySEC has done many other successful crackdowns aimed to protect the welfare of consumers and businesses.
The latest actions echo the regulators commitment to establish the Cyprus securities market as one of the safest, most attractive and reliable destinations for investment.
A significant number of overseas binary options brokers and retail forex brokers have obtained registration from CySEC. However, the watchdog continues to carry out strong supervision, to ensure the protection of investors interests and the healthy development of the securities market.
