The Cyprus Securities and Exchange Commission (CySEC) has recently made an announcement regarding the withdrawal of membership from the Investors Compensation Fund (ICF) for four investment firms. This action is in accordance with the stipulated regulations outlined in CySEC’s Directive DI87-07, which governs the operations of the ICF.
The firms that have lost their membership status are as follows:
1. IFCM Cyprus Ltd
2. Arumpro Capital Ltd
3. Greenpost Trading Europe Ltd
4. Reliantco Investments Ltd
Despite the withdrawal from the ICF, it is essential to note that clients covered by the fund will still retain their rights to claim compensation for any investments made prior to the loss of membership, provided they meet the required conditions for compensation as set out in the directive. Furthermore, this withdrawal does not impede the initiation of compensation procedures for the affected clients.
The decision to revoke the ICF membership was taken in conjunction with the earlier withdrawal of the Cyprus Investment Firm (CIF) authorizations for the aforementioned companies. The specific authorizations for each of these firms have been rescinded by CySEC, leading to the subsequent withdrawal from the ICF.
This development underscores the ongoing regulatory oversight and enforcement actions undertaken by CySEC to ensure compliance within the financial sector. Such measures are pivotal for maintaining trust and protecting the interests of investors in Cyprus.