XTrade's partial suspension by the Cyprus Securities and Exchange Commission (CySEC ) was rescinded today, ending a one-month action by the regulator. The lifting of the suspension coincides with XTrade’s compliance with CySEC regulations, following a violation of marketing relations last month.
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On May 30, 2017, XTrade’s license was partially suspended because the brokerage had violated regulations on disseminating marketing materials. Since then, XTrade has not been authorized to onboard any new clients – existing clients of the company remained unaffected, however.
At the time of the suspension, CySEC indicated that XTrade was unable to control the compliance of its teams with respect to marketing regulations. A previously released regulatory statement asserted that XTrade’s marketing material ‘does not seem to be fair, clear and not misleading. The company does not seem to have in place adequate policies and procedures sufficient to ensure its compliance with marketing material’.
The development had also closely mirrored the suspension of a number of XTrade’s employees - it parted ways with nearly sixty employees from its Israeli call center. CySEC’s policy in this regard has become increasingly stringent, as the regulator has imposed tougher restrictions on the use of call centers outside of the EU. On its part, XTrade had outsourced much of its European conversions and marketing operations out of Israel. However, the groundswell of pressure levied on Israeli call centers both on the international and local level to stop marketing abroad helps explain the timing of the firings.
Back to business
Fast-forwarding to the present, XTrade’s temporary suspension has been lifted as the group has fully satisfied the requisite CySEC laws. CySEC had given XTrade one month to rectify its practices and the aforementioned marketing violations, a feat that has now been achieved. Moving forward, XTrade will be allowed to on-board clients and fully offer its services unabated as an authorized Cyprus Investment Firm (CIF).
Finance Magnates reached out to XTrade, but the company was unavailable for additional comment.
