In late September 2015 the Cyprus Securities and Exchange Commission (CySEC) had announced for the first time the suspension of the Cyprus Investment Firm (CIF) license of Forex brokerage Falcon Brokers Ltd. This company, offering its services to investors via the domain http://new.falconbrokers.com, has had its license suspended for violations of the Investment Services and Activities and Regulated Markets Law of 2007. In particular, the regulator alleged that the broker violated the operational requirements related to clients’ funds.
CySEC had then noted that the decision to suspend the CIF licence was taken as the alleged violation may potentially endanger the Company’s clients’ interests and the smooth operation of the capital market in general.
The company was originally given one month to take actions in order to comply with the relevant legal provisions and since it appears not to have done so its license suspension was extended again in November and more recently on 4 December.
Through the relevant announcement the Cypriot regulator reminds investors that while the suspension of the authorisation is in force, the particular broker cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law, and that it must, if existing clients so wish, without being considered in violation of section 26(5) of the Law: close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes and also return to existing clients all of their funds and profits earned.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.