The Cyprus Securities and Exchange Commission (CySEC) today revealed that the Investors Compensation Fund (ICF) membership of two companies has been withdrawn – Hoch Capital Ltd and ED&F MAN Capital Markets CEEMA Ltd.
Hoch Capital operates forex and CFDs brokerage brands itrader and tradeATF, while ED&F MAN Capital Markets is is a global financial brokerage and trading business and the financial services division of ED&F Man Group.
Through membership with the ICF, regulated financial services companies receive protection on the deposits of their clients of up to €20,000.
Hoch Capital ED&F MAN Capital had their memberships revoked after their Cyprus Investment Firm (CIF) licenses were withdrawn. Hoch Capital voluntarily decided to renounce its license.
In March 2019, Hioch Capital faced allegations of possible regulatory violations and settled with CySEC for €200,000. In June 2020, FCA banned the Cypriot firm for using unauthorised celebrity endorsements on social media as part of their marketing.
CySEC stated in the official announcement:
The loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients.
Earlier this week, the Board of CySEC announced it had initiated the compensation payment process for Maxigrid clients under the Investors Compensation Fund (ICF).
