CySec announced Initiation of the compensation payment process for Falcon Brokers 

The Cyprus Securities Exchange Commission (CySec) has issued an announcement to inform about its decision for Initiation of the compensation payment process by the Investor Compensation Fund for Clients of IFs (‘the I.C.F’) for Falcon Brokers Ltd.

CySec’s decision is subject to paragraphs 3(1)(a) and 23 of Directive DI144-2007-15 of 2015 (‘the I.C.F. Directive’).

With its announcement, CySec wishes to inform the public and especially the covered clients of the company Falcon Brokers Ltd (the ‘Company’), of the following:

1. The Company’s CIF authorisation has been withdrawn as of March 2016.

2. The Company, has not until today, settled its obligations arising from the services that it offered to its client, as it should have done in accordance with section 25(4) of Law 144(I)/2007.

3. The CySec has ascertained that the Company (as a member of the I.C.F.) cannot 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 instantly.

4. The CySec has not been able to communicate with the Company from the date of the withdrawal of its authorization, as the Company’s contact number seems to be disconnected.

5. The CySec issues, with this announcement, its decision reached at its meeting, dated 26 September 2016, for the commencement of the compensation payment process by the I.C.F.

6. Following this announcement and subject to the provisions of paragraph 24 of the I.C.F. Directive, the I.C.F. will publish, in at least three newspapers of national coverage, an invitation towards the Company’s covered clients, to submit their claims against the Company in respect of the covered services, specifying the procedure for submitting the relevant applications, the submission deadline and their content. The said publication will be posted on the website of the CySec.

7. All affected clients (covered clients of the Company) are invited to study the I.C.F. Directive as well as the information for the submission of compensation applications found on the CySEC’s website and take all appropriate actions for the submission of their claims.

Source: CySec – decision 10-31-2016 for the initiation of the compensation payment

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