The Cyprus Securities and Exchange Commission (CySEC) today announced the suspension of the Cyprus Investment Firm (CIF) license of Forex brokerage Falcon Brokers Ltd.
The company, which currently operates from https://new.falconbrokers.com, has had its license suspended for violations of the Investment Services and Activities and Regulated Markets Law of 2007. In particular, the regulator alleges that the broker violated the operational requirements related to clients’ funds.
CySEC notes that the decision to suspend the CIF licence was taken as the alleged violation may potentially endanger the Company’s clients’ interests and the smooth operation of the capital market in general.
The company is given one month to take actions in order to comply with the aforementioned provision.
While the suspension of the authorisation is in force, the broker:
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Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
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Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law:
2.1. Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
2.2. Return to existing clients all of their funds and profits earned.
To view the official announcement on the Falcon Brokers license suspension click here.