CySec: The license of a Cyprus Investment Firm continues to be suspended 

The Cyprus Securities and Exchange Commission (CySec) has issued an announcement to inform for the Continuance of Suspension of Cyprus Investment Firm (CIF) licence of the firm ‘UBFS Invest powered by Moneychoice Brokers Ltd’ with number 239/14.

The decision follows previous announcement dated 27 May 2016.

Read the previous decision:

– 27 May 2016: CySec suspends CIF UBFS Invest powered by Moneychoice Brokers Ltd

CySec’s decision is pursuant to section 26(4)(b) of the Investment Services and Activities and Regulated Markets Law (‘the Law’), as there are suspicions for an alleged violation of:
1. section 28(1) of the Law, for, as it appears, the non compliance by the Company with the requirement for authorisation referred to in section 18(2)(j) of the Law (protection of clients’ funds),
2. section 67(1) of the Law, as its own funds appear less from the sum of its capital requirements,
3. Article 92(1) of the European Regulation 575/2013 as its total capital ratio appears less than the requirements of the Regulation.

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 (1) month, the Company has to take actions in order 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 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 should upload on all of its websites that its CIF licence has been suspended.

2. The Company must, if existing clients so wish, without being considered in violation of section 26(5) of the Law,:

2.1. close any 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, if and when the clients so wish.

Section 26(4)(b) of the Investment Services and Activities and Regulated Markets Law (‘the Law’) says that:

The CIF must, within the deadline set by the Commission as stated in subsection (3), to inform the Commission of its compliance with the provisions of this Law or/and the directives issued pursuant to this Law or/and the Regulation (EC) No 1287/2006. Where the Commission- is not satisfied that the CIF has complied with the above, it automatically extends the suspension of the CIF’s authorisation and commences proceedings to withdraw the relevant authorisation; the CIF authorisation will remain suspended until the Commission decides as to whether to withdraw or not the relevant authorisation:
It is provided that where the CIF does not inform the Commission within the set deadline as stated in subsection (3) with regards its compliance with the provisions of this Law or/and the directives issued pursuant to this Law or/and the Regulation (EC) No 1287/2006, the Commission automatically applies the procedure laid down in this paragraph.

Source: CySec – Decision 06-28-2016 continuance of suspension CIF licence UBFS Invest

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