CySec suspended the license of a Cyprus Investment Firm 

CySEC

The Cyprus Securities and Exchange Commission (CySec), has announced that:

The authorisation of the Cyprus Investment Firm ‘Pegase Capital Ltd’, number 225/14, is suspended, pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (‘theLaw’), due to suspicions of alleged violations of:

1. section 6(8) of the Law (CIF authorisation),

Section 6(8) refers that: Without prejudice to subsection (9), a CIF may only provide the investment and ancillary services or/and only perform the investment activities that are stated in its authorisation,

2. 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), section 13(2) (CIF shareholders) and section 18(2)(a), (d) and (j) (Organisational requirements) of the Law, and in the relevant paragraphs of Directive DI 144-2007-01 of 2012 for the Authorisation and Operating Conditions of CIFs,

3. section 36(1)(a) of the Law (Conduct of business obligations when providing investment services to clients) and paragraph 6 of Directive DI 144-2007-02 of 2012 for the Professional Competence of Investment Firms and the Natural Persons employed by them.

The above decision was reached taking into serious consideration that the above alleged violations may possibly endanger the interests of the clients of Pegase Capital Ltd and the operation of the capital market.

Within one (1) month, Pegase Capital Ltd has to take actions in order to comply with the aforementioned provisions.

While the suspension of the authorisation is in force, Pegase Capital Ltd:

1. Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.

2. 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.

Source: CySec – Decision 03-04-2016 regarding the suspension of CIF licence of Pegase Capital Ltd

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