The Cyprus Securities and Exchange Commission (CySEC) revealed on Tuesday the withdrawal of the Cyprus Investment Firm (CIF) license of London Capital Group (Cyprus) Ltd., citing multiple violations of necessary compliance requirements.
According to the regulator, the broker stopped working to select at least 2 individuals as directors. In addition, it « did not establish sufficient policies and treatments to guarantee its compliance, consisting of the compliance of its managers and employees, with its responsibilities under the Law, as it did not guarantee that its compliance officer, who is accountable for the compliance function and for any reporting. »
The decision to withdraw the license of the broker was taken by the Cypriot regulator on June 14 in a meeting.
As a result of the withdrawal, the broker now has to finish up its operations under the CIF license, by closing the opened positions and return the customers’ funds, including profits. It has to analyze and deal with all customer grievances.
Additionally, the broker has to « ensure it does not provide financial investment and supplementary services, other than those that are required for the conclusion of the pending deals on behalf of the Business and its clients, based on their directions. »
A Troubled Broker
The United Kingdom-based London Capital Group Holdings plc has been in struggling waters given that 2018 and the UK service appointed liquidators in 2015, starting the process of an organization end up.
The brokerage continued to operate through its Cypriot license, that entity too was flagged by the local regulator earlier. The final decision of the license withdrawal followed CySEC imposed a penalty of EUR40,000 on the broker for a number of other compliance violations.
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