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In a regulatory decision, the Cyprus Securities and Exchange Commission (CySEC) announced the withdrawal of the Cyprus Investment Company (CIF) license of Leverate Financial Services Ltd. The decision, taken at the CySEC meeting on December 4, 2023, follows the company's explicit waiver of its authorization.
The company's recent decision to voluntarily relinquish its authorization prompted CySEC to take action in accordance with the relevant provisions of the Law on Investment Services and Activities and Regulated Markets.
The withdrawal of the CIF authorization effectively prohibits Leverate Financial Services Ltd from continuing its operations within the regulatory framework overseen by CySEC. The announcement did not cite any judicial review associated with the decision, indicating that the withdrawal of authorization is final, pending any future legal developments.
Leverate, established in 2008, has grown into a technology and services provider within the brokerage industry. It has expanded globally and currently employs 150 people, up from an initial team of 4 people. The company offers dedicated account managers, positioning itself as a notable player in the Forex brokerage industry.
Last October, Leverate's Brad Alexander opined that Limassol, Cyprus, had been a major center for retail FX/CFD brokers for many years. Many multi-asset brokers believe that the CySEC license is more favorable to them because they have access to the entire European market.
The license may not have the prestige of the UK's FCA license, but it is considered to be in a higher category than most offshore jurisdictions. One of the advantages that the CySEC license brings over the FCA license is the possibility of offering cryptocurrency CFDs to its clientele, at an additional cost at the application stage. Crypto CFD trading is not permitted under the FCA.
CySEC revokes CIF for four companies and ICF withdraws its membership
Earlier, CySEC announced the withdrawal of CIF authorizations for four Cyprus-based investment companies: Stone Edge Capital Ltd, Holiway Investments Ltd, FXBFI Broker Financial Invest Ltd and KAB Strategy Ltd, as reported by Finance Magnates. Additionally, the Investor Compensation Fund (ICF) revoked the membership of these companies.
The ICF's decision to revoke membership follows CySEC's withdrawal of CIF authorizations for the aforementioned companies. Despite this, covered clients of these companies are still eligible to file compensation claims for investment transactions conducted prior to the withdrawal of their membership, provided they meet CySEC's eligibility criteria.
ΑΠΟΦΑΣΙ ας Leverate Financial Services Ltd
CySEC decision to withdraw the CIF license of Leverate Financial Services Ltdhttps://t.co/AJ8JnU3E8g
– CySEC (@CySEC_official) February 8, 2024
CySEC investigations revealed violations of CIF authorization conditions by Stone Edge Capital and Holiway Investments. Stone Edge Capital was found to be non-compliant with organizational standards and did not have sufficient anti-money laundering (AML) systems in place. Holiway Investments has also faced compliance issues.
In the case of FXBFI Broker Financial Invest, inadequate AML/CTF policies led to a €50,000 penalty. KAB Strategy has voluntarily surrendered its license. CySEC's actions highlight the importance of regulatory compliance and investor protection in the Cypriot financial landscape.
In a regulatory decision, the Cyprus Securities and Exchange Commission (CySEC) announced the withdrawal of the Cyprus Investment Company (CIF) license of Leverate Financial Services Ltd. The decision, taken at the CySEC meeting on December 4, 2023, follows the company's explicit waiver of its authorization.
The company's recent decision to voluntarily relinquish its authorization prompted CySEC to take action in accordance with the relevant provisions of the Law on Investment Services and Activities and Regulated Markets.
The withdrawal of the CIF authorization effectively prohibits Leverate Financial Services Ltd from continuing its operations within the regulatory framework overseen by CySEC. The announcement did not cite any judicial review associated with the decision, indicating that the withdrawal of authorization is final, pending any future legal developments.
Leverate, established in 2008, has grown into a technology and services provider within the brokerage industry. It has expanded globally and currently employs 150 people, up from an initial team of 4 people. The company offers dedicated account managers, positioning itself as a notable player in the Forex brokerage industry.
Last October, Leverate's Brad Alexander opined that Limassol, Cyprus, had been a major center for retail FX/CFD brokers for many years. Many multi-asset brokers believe that the CySEC license is more favorable to them because they have access to the entire European market.
The license may not have the prestige of the UK's FCA license, but it is considered to be in a higher category than most offshore jurisdictions. One of the advantages that the CySEC license brings over the FCA license is the possibility of offering cryptocurrency CFDs to its clientele, at an additional cost at the application stage. Crypto CFD trading is not permitted under the FCA.
CySEC revokes CIF for four companies and ICF withdraws its membership
Earlier, CySEC announced the withdrawal of CIF authorizations for four Cyprus-based investment companies: Stone Edge Capital Ltd, Holiway Investments Ltd, FXBFI Broker Financial Invest Ltd and KAB Strategy Ltd, as reported by Finance Magnates. Additionally, the Investor Compensation Fund (ICF) revoked the membership of these companies.
The ICF's decision to revoke membership follows CySEC's withdrawal of CIF authorizations for the aforementioned companies. Despite this, covered clients of these companies are still eligible to file compensation claims for investment transactions conducted prior to the withdrawal of their membership, provided they meet CySEC's eligibility criteria.
ΑΠΟΦΑΣΙ ας Leverate Financial Services Ltd
CySEC decision to withdraw the CIF license of Leverate Financial Services Ltdhttps://t.co/AJ8JnU3E8g
– CySEC (@CySEC_official) February 8, 2024
CySEC investigations revealed violations of CIF authorization conditions by Stone Edge Capital and Holiway Investments. Stone Edge Capital was found to be non-compliant with organizational standards and did not have sufficient anti-money laundering (AML) systems in place. Holiway Investments has also faced compliance issues.
In the case of FXBFI Broker Financial Invest, inadequate AML/CTF policies led to a €50,000 penalty. KAB Strategy has voluntarily surrendered its license. CySEC's actions highlight the importance of regulatory compliance and investor protection in the Cypriot financial landscape.
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