CySEC suspends the CIF license of Harvest Financial Services

The Cyprus Securities and Exchange Commission (CySEC) has issued an announcement on 13 February 2014, informing the public of its decision to suspend the CIF authorization of the company Harvest Financial Services Ltd for a period of three months according to the provisioQns of the relevant law, i.e. of Article 26(3) of the Provision of Investment Services, the Exercise of Investment Activities and the Operation of Regulated Markets Law.

Harvest Financial Services Ltd was the holder of CIF license 21/03 and was one of the first firms to be regulated by CySEC, since July 2003. The firm was offering forex and other services through the site www.harvestgroup.com.cy.

CySEC’s decision to suspend the license of this particular CIF, as explained in the official announcement, is that it is derived by the information submitted to CySEC that the firm is not in full compliance with the relevant law. More specifically it is in breach of articles 10 and 67 of the law which concern the height of a firm’s initial capital and own funds, since on 30 September 2012 the firm’s own capital was under the minimum permissible limit of €200.000. Moreover, it does not comply with Article 72 of the Law, which concerns the disclosure and submission of information relating to a CIF’s capital adequacy,  nor does it comply with sections 39 ( 2 ) and 39 ( 5) of the Directive DI144 -2007-05 of 2012 and paragraphs 18 ( 1 ) and 18 ( 3 ) of the Directive DI144 -2007- 06 of 2012. Harvest Financial Services has failed to submit the reports concerning its capital adequacy and its large exposures on 31/3/2013 and 30/06/2013.  Finally the firm is in breach of Article 114 of the Law since it has not submitted its financial accounts for the year 2012.

CySEC points out that during the suspension period of the three months the company is obliged to take the necessary steps in order to achieve its compliance with the above mentioned legal provisions. Moreover, CySEC clarifies that during the suspension period the company is not permitted, as stipulated in Article 26(5) of the Law, to provide or appear to be providing any kind of investment or ancillary services.

 

This new decision by CySEC is yet another tangible proof that the regulator is becoming stricter with the entities in its jurisdiction. Especially the penalties on capital adequacy matters perhaps fall within the framework of the recently issued circular by CySEC regarding the offering of bonuses by CIFs regulated by the Commission.

  • Share this post!
Posted by

George Milios

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.

Massive settlement between US authorities and Banc de Binary

Massive settlement between US authorities and Banc de Binary

According to reports in the Wall Street Journal and other media, the years- long battle between binary options broker Banc de Binary and the US financial authorities, the U.S. Securities and Exchange Commission and...…

Published: Thursday 29 October, 2015

More brokers warned against by regulators

More brokers warned against by regulators

As the sector of online binary options trading moves closer and closer to getting fully regulated, binary options brokers are appearing on the warning lists of regulators as regularly as forex brokers. Shortly before the end of 2015, the Commissione Nazionale per le So...…

Published: Thursday 29 October, 2015

Binary options brokers warned against across the globe

Binary options brokers warned against across the globe

Moving the binary options industry more towards regulation proves a daunting endeavor, as many binary options brokers continue to solicit clients in jurisdictions where they are not allowed, or falsely claiming to be regulated to offer their services. In response, the relevant market regu...…

Published: Thursday 29 October, 2015

Multiple warnings from regulators against unlicensed brokers

Multiple warnings from regulators against unlicensed brokers

Financial markets across the globe have lately been busy once again chasing after unregulated brokers and issuing warning against entities that do not hold valid licenses to operate within their...…

Published: Thursday 29 October, 2015