The Cyprus Securities and Exchange Commission (CySEC) today announced the official start of compensation payments to clients of retail Forex broker FXPulp, aka Pulp International Business Ltd, which had its license withdrawn in April this year.
The payments will be conducted and organized by the Investor Compensation Fund for Clients of Investment Firms (the I.C.F). The I.C.F. will publish, in at least three newspapers of national coverage, an invitation towards the broker covered clients, to submit their claims against the company.
The Cypriot watchdog has ascertained that the broker (as a member of the I.C.F.) is unable fulfill its obligations towards its clients in the near future, for reasons which do not consist of a temporary lack of liquidity which can be dealt with swiftly.
The regulator has contacted the senior management and the main shareholder of the company, Mr. Said Salem, in an effort to ensure the broker’s compliance with the provisions of the legislation and the fulfilment of the clients’ claims. This effort, however, was unsuccessful.
Yesterday, the CySEC announced a set of sanctions against the directors of the broker. The Board of CySEC has imposed an administrative fine of €150,000 on Mr. Said Salem and on Mr. Shaher Hasanain. They are also prohibited from exercising professional activity related to the financial sector for a period of five years, that is, until November 2020.
To view the official announcement from CySEC on the start of compensation payments, click here.