The Cyprus Securities and Exchange Commission (CySEC) has announced the suspension of the CIF authorization for a CFD brokerage firm operating under the name 3anglefx. This regulatory action affects a company that has been operating with a license from CySEC since 2020. The suspension comes on the heels of previous regulatory actions, including a fine imposed on the firm in 2022 for issues related to the protection of client funds.
The suspension decision by CySEC is based on significant violations committed by the firm. Specifically, these violations include non-compliance with several articles of the Cypriot legislation concerning financial operations. The breaches are related to issues such as anti-money laundering and terrorist financing regulations, which are outlined in their directives. Additionally, there were failures regarding the governance and operational requirements that firms must adhere to in order to maintain their licenses.
CySEC has pointed out that the violations identified do not warrant an outright revocation of the brokerage’s license on a permanent basis. Instead, the regulator believes that the issues can potentially be rectified if the firm is given a reasonable period to address them. In an effort to comply with regulatory obligations, the company has already begun taking steps toward rectification and has indicated that further actions are forthcoming.
The firm is allowed a timeframe of two months to align its operational practices with CySEC’s requirements. During this suspension period, the firm is prohibited from engaging in numerous key activities. This includes offering investment services, entering into new transactions, or soliciting new clients. However, the firm may complete existing transactions as per client instructions and return funds or financial instruments owed to clients.
This sequence of events highlights the strict oversight exercised by CySEC in maintaining regulatory compliance within the financial services sector in Cyprus. The authority is committed to ensuring that firms operate within legal parameters designed to protect investors and uphold market integrity.
As the situation unfolds, the affected firm faces a critical window to demonstrate its commitment to rectifying the issues that led to the suspension. Compliance with regulatory demands is essential for reinstating its ability to operate normally and serve its clientele without restrictions.