The Cyprus Securities and Exchange Commission (CySEC) today announced it has started the compensation process under the Investor Compensation Fund (ICF) Maxigrid Ltd clients and the FX and CFDs broker brands it operates, Dualix and AGM Markets.
The Cypriot regulator has detailed that the compensation applications can be submitted online, as well as offline with supporting documents.
CySEC stated:
Covered clients must submit their claims against the Company, if any, arising out of the covered services, by the 30th of April 2023.
Under the ICF, clients of locally regulated financial services companies have protection from CySEC of up to €20,000, in case of the financial services company becomes bankrupt or is unable to return customer deposits.
Maxigrid background
The company ran its business from Cyprus after it secured a Cyprus Investment Firm (CIF) license in 2011.
That was until last February when Maxigrid’s license was withdrawn by CySEC. According to the regulator, the broker violated multiple mandatory compliance rules that led to the cancellation of its license.
Moreover, the broker’s license was suspended a few times before it was finally cancelled.
CySEC initiated the compensation payment process for Maxigrid Ltd clients under the ICF last June after the board decided on it in March. In the announcement, the Cypriot watchdog noted that the broker “unable to meet its obligations arising out of investors’ claims and has no early prospect of being able to do so.”
Additionally, the regulator imposed sanctions on current and former directors of Maxigrid and a five year ban from exercising management functions in CIFs.
