The Cyprus Securities and Exchange Commission (CySEC) has shown its authority to Atlas Capital Financial Services Ltd, the parent company of online broker ACFX, with its official website www.acfx.com.
CySEC has announced on Thursday that the decision to suspend the authorisation of Atlas Capital Financial Services Ltd was based on company’s possible non-compliance with the authorization and operating conditions at all times.
ACFX’s suspension was expected as there were rumors about company’s problems with Chinese clients, who were trying to withdraw their money unsuccessfully from ACFX. The company informed that they were scammed by certain Chinese clients, taking advantage of incorrect swap rates from the company.
CySEC states that the decision was reached due to the fact that the alleged
violations may possibly endanger the Company’s clients’ interests or the investor
interests or generally the regular operation of the capital market.
ACFX will now have one month from the date of CySEC’s decision to take actions in order to comply with legal provisions, in particular:
a) continuity and regularity in the performance of investment services;
b) effective procedures for identifying, managing, monitoring and reporting of the risks;
c) adequate arrangements for safeguarding of clients funds.
While the company’s suspension is in force, ACFX:
- Cannot enter into a business relationship with any person and cannot take any new clients.
2. Cannot receive, transmit or execute any orders from clients for buying any financial instruments.
3. Cannot provide/perform any investment services in Cyprus or outside Cyprus (in member states and third countries).
4. Cannot advertise itself as investment services provider and make advertising campaigns and announcements.
5. Must upload on all of its websites that its CIF license has been suspended.
6. Must, if existing clients so wish:
6.1. 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.
6.2. Return to existing clients all of their funds and profits earned.
To see the full statement of CySEC, click here.
