CySEC recalls the partial suspension of the CIF authorisation of two Cyprus Investment Firms 

The Cyprus Securities and Exchange Commission (‘CySEC’) has issued today two announcements to inform that decided to recall the partial suspension of the authorisation of two Cyprus Investment Firms (‘CIFs’).

In accordance with the announcements:

The CYSEC, further to its Decision for the partial suspension of the authorisation of the CIF Magnum FX (Cyprus) Ltd and its Decision for the partial suspension of the authorisatin of the CIF F1Markets Ltd, decided at its meeting dated 15 June 2020 to recall its decision for the partial suspension of the authorisation of the CIF Magnum FX (Cyprus) Ltd, number 359/18 and to recall its decision for the partial suspension of the authorisation of the CIF F1 Markets Ltd, number 267/15.

Both CySEC’s decisions for the recall of the partial suspension of the authorisation of the two above mention CIFs are pursuant to paragraph 9(3)(a) of Directive DI87-05 for the Withdrawal and Suspension of Authorisation, as CySEC has been satisfied that the two Companies have complied with articles 25(1), 25(2)(b), 25(3), 25(4)(a) and 25(5) of The Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).

As CySC noted in its decisions, CySEC has reached the decision for the recalls, taking into consideration, inter alia, the following:

A. The above mentioned Companies have taken the following measures:

1. The Companies have informed that they have stopped accepting and onboarding new clients.

2. The Companies have informed that they have stopped all marketing and promotion of its services.

3. The Companies have informed that they have assigned to their internal auditor the assessment of their compliance with Article 9 of the Directive 87-05 and the submission of weekly reports to the CySEC.

B. The above mentioned Companies have assured the CySEC that they have taken or intend to take the following measures:

1. The Companies have informed that they have stopped using call centers for the promotion of their services and for contacting clients. The Companies will have teams based in Cyprus to provide only retention and support services to their clients. The Companies have  informed that the teams will not be initiating any calls to clients and they will only be responding to calls for assistance/support, at the initiation of the client.

2. Τhe Companies have informed that they will put in escrow with their internal auditor a specific amount, which will be utilized to resolve existing open client complaints, where justified.

3. The Companies have informed that they intend to make changes in their organizational structure and more specifically, to replace members of their management.

4. The Companies have informed that they have stopped all marketing and promotion of their services, until all proposed measures are implemented.

Source: CySEC recall decision – Magnum FX (Cyprus) Ltd, CySEC recall decision – F1 Markets Ltd

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