Cyprus financial regulator CySEC has issued a notice stating that it has suspended the CIF license of PFX Financial Professionals Ltd, which operates Retail Forex broker FXFINPRO at website fxfinpro.com.
The company also operates portfolio management company FINPRO Investments at finproinvest.com.
According to CySEC, there are suspicions of an alleged violation by FXFINPRO regarding persons who effectively direct the business, as well as regarding conduct when providing investment services to clients.
CySEC stated that the alleged violations may possibly endanger the company’s clients’ interests and generally the smooth operation of the capital market.
CySEC has given FXFINPRO one month to comply with the aforementioned provisions.
While the suspension of its license is in force FXFINPRO cannot provide any services to clients, nor advertise. The company must mention on all of its websites that its CIF license has been suspended. And, FXFINPRO must inform its clients of the suspension, and invite them until December 24 to close all open positions, with the return to them of their funds and profits earned.
The full CySEC notice follows, and can also be seen here (pdf).
24 November 2016
CYSEC Decision
Regarding: PFX Financial Professionals Ltd
Legislation: The Investment Services and Activities and Regulated Markets Law
Subject: Suspension of CIF licence
The Cyprus Securities and Exchange Commission (‘CySEC’) announces that the authorisation of the Cyprus Investment Firm ‘PFX Financial Professionals Ltd’ (‘the Company’), with number 193/13, is suspended, pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘the Law’), as there are suspicions of an alleged violation of:
1. section 28(1) of the Law, due to the Company’s possible non compliance at all times with the condition of its authorization provided for in section 12(1) (Persons who effectively direct the business of a CIF), 18(2)(a), (f) and (j) (Organisational requirements) of the Law,
2. section 36(1) of the Law (Conduct of business obligations when providing investment services to clients).
The above decision was reached due to the fact that the aforementioned alleged violations may possibly endanger the Company’s clients’ interests and generally the smooth operation of the capital market.
Within one month from the date of CySEC’s Decision, PFX Financial Professional Ltd has to comply with the aforementioned provisions.
While the suspension of the authorisation is in force,
1. The Company cannot, pursuant to section 26(5) of the Law, provide any services, and more specifically:
1.1. Cannot enter into a business relationship with any person and take upon any new client.
1.2. Cannot receive, transmit and execute any orders from clients (existing or not) for buying financial instruments.
1.3. Cannot provide any investment services in Cyprus or outside Cyprus (in member states and third countries).
1.4. Cannot advertise itself as an investment services provider and have relating advertisements.
1.5. Should mention on all of its websites that its CIF license has been suspended.
2. The Company must, in relation to its existing clients, proceed with the following actions, without being considered in violation of section 26(5) of the Law,:
2.1. To inform them that its CIF license has been suspended.
2.2. To invite them, within the set deadline for compliance (until 24 December 2016), to close all open positions in relation to their contracts.
2.3. To return to them their funds and profits earned.