Cyprus Securities and Exchange Commission (CySEC) withdrew
Investor Compensation Fund (ICF) membership for four investment firms.
In a statement issued today (Wednesday), the regulator
revoked the ICF membership of IFCM Cyprus Ltd, Arumpro Capital Ltd, Greenpost
Trading Europe Ltd, and Reliantco Investments Ltd.
Without providing the reason behind the membership loss,
the regulator explained that covered investors could still receive their compensation
up to the point that the membership status changed.
What This Means for Investors
According to the watchdog, this means eligible clients
can still initiate compensation claims related to previous operations, ensuring
some level of security despite the firms losing their ICF membership status.
Διαγραφή μελών από το Ταμείο Αποζημίωσης Επενδυτών (ΤΑΕ)https://t.co/dHzrbRnSrdWithdrawal of Investors Compensation Fund (ICF) membershiphttps://t.co/COXjNIoMk7
— CySEC – Cyprus Securities and Exchange Commission (@CySEC_official) January 22, 2025
“The loss of ICF membership status does not mean loss
of rights of covered clients to receive compensation in relation to investment
operations carried out until the loss of membership status,” the announcement noted. “If the conditions for compensation are fulfilled
pursuant to the directive, nor does it obstruct the initiation of the
compensation procedure for covered.”
Why the Membership Was Revoked
The decision aligns with CySEC’s ongoing commitment to
regulatory oversight. The withdrawal of the CIF authorizations triggered the
removal of ICF membership for these firms, a process detailed under the
regulator’s guidelines.
CySEC has not disclosed specifics about the violations
or issues leading to the withdrawal of the firms’ licenses but emphasized
adherence to regulatory standards.
While the ICF provides a safety net for clients of
regulated firms, its protections depend on firms maintaining their CIF
licenses. The regulator has urged investors to monitor updates from CySEC and
verify the regulatory status of firms before engaging in financial activities.
Early last year, CySEC also withdrew the ICF membership of the retail trading firm Brokereo. The suspension of Neo Premium Investments (NPI) Ltd., which offered its retail FX/CFD trading services through the brokereo.com website, was followed by the regulator’s initial decision to revoke the Cypriot Investment Firm license of the firm.
This article was written by Jared Kirui at www.financemagnates.com.
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