Squared Financial appears to have wrapped up its retail offerings in Europe as it “formally initiated a strategic and voluntary renunciation” of its Cyprus Investment Firm licence. According to an announcement on its website, the move is part of its “strategic transition.”
“A Broader Internal Restructuring”
The contracts for difference (CFD) broker is no longer accepting new clients or accounts under the Cypriot licence and has also “initiated a structured and orderly wind-down of existing client relationships.”
“All clients will be contacted directly with clear instructions regarding the closure of open positions and the return of any remaining funds,” the broker noted.
Although the latest status of Squared Financial’s licence has not been updated on the registry of the Cyprus Securities and Exchange Commission (CySEC), the company received the licence in June 2017.
Squared Financial, which ran its operations mainly from Cyprus, previously settled with the Cypriot regulator over allegations of lapses in the marketing, distribution, and sale of CFD instruments to retail clients, paying €35,000.
“This transition is part of a broader internal restructuring aimed at streamlining our regulatory framework and improving operational efficiency across our international group,” Squared Financial noted on its website as the reason behind the Cyprus licence withdrawal.
Despite the Cyprus wind-down, the Squared Financial brand will continue to operate under a Seychelles licence.
Brokers Leaving Cyprus
Meanwhile, Squared Financial is not the first CFD brand to wind down its regulatory presence in Cyprus and move business offshore. BDSwiss followed a similar approach; however, it first dropped offers to retail clients before fully handing back its Cyprus licence last year.
Several other major Cyprus-based brands, including Exness, FXTM, IronFX, and RoboMarkets, have also stopped onboarding retail CFD traders under their Cyprus licence and are focusing mainly on offshore markets. While some still hold their Cyprus licence, others have given it up.
Recently, FinanceMagnates.com reported that Doo Group, which runs its retail and institutional brokerage arm under the D Prime brand, has started to vacate its Limassol office.
This article was written by Arnab Shome at www.financemagnates.com.
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