The Cyprus regulator (CySEC) announced that it has decided to suspend the Cyprus Investment Firm (CIF) authorisation of the company AFX Capital Markets Ltd.
The above decision was reached as the aforementioned alleged violation causes concern and risk relating to the protection of the Company’s clients or of the investors and constitutes a threat to the orderly operation and integrity of the market.
The complete text of the regulator’s announcement reads as follows:
Announcement date: 19.07.2019
CySEC Decision date: 19.07.2019
Regarding: AFX Capital Markets Ltd
Legislation: The Investment Services and Activities and Regulated Markets Law
Subject: Suspension of CIF licence
The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm AFX Capital Markets Ltd (‘the Company’), number 119/10, is suspended in whole, pursuant to section 71(6)(c) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’) and section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘DI87-05’), as there are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorisation condition in section 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the safeguard of clients’ funds.
Within ten (10) days, the Company has to take actions in order to comply with the aforementioned provisions.
For as long as the suspension of the authorisation is in force, as provided for in section 9 of DI87-05,:
1. The Company is not permitted to:
1.1 Provide/carry out investment services/activities.
1.2 Enter into any business transaction with any person and accept any new client.
1.3 Advertise itself as a provider of investment services.
2. The Company, provided this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05:
2.1. Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
2.2. Return all funds and financial instruments which are attributable to its clients.