CySEC Suspends License of Libertex.com Operator Indication Investments

The Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC) has partially suspended the Cyprus Investment Firm (CIF) license of Indication Investments Ltd, the operator of the FX and CFDs broker Libertex.com.

The regulatory decision for the suspension has been made on August 3 for multiple alleged violations of mandatory compliances.

According to Tuesday’s notice, the Cypriot regulator has found possible lapses on the broker's part in complying with the regulatory framework on the restriction on the marketing, distribution and sale of CFDs to retail clients. There might be additional lapses in the company’s organizational requirements and the offerings of investment services, ‘in accordance with the best interests of the clients’.

Furthermore, the company did not possibly have ‘provided information, including marketing communications, to its clients or potential clients that is fair, clear and not misleading'.

“The [regulatory] decision was reached as the aforementioned alleged violations cause concern and risk relating to the protection of the Company’s clients and/or constitute a threat to the orderly operation and integrity of the market,” CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term stated in the official notice.

The brokerage operator has until September 17, 2021, to take necessary actions and comply with the regulatory requirements.

Trading Services Will Be Hampered

As Libertex.com’s license remains suspended, the broker cannot take new clients or market and advertise its investment services, directly or via any third party. It cannot even take new deposits from the existing clients.

However, the broker is allowed to take funds to cover margin requirements of the existing open positions and can complete all its own transactions and those of its clients which are already before it. Additionally, Libertex clients can request withdrawals in the suspension period.

"We were just made aware of the CySEC’s decision regarding our license," Giorgos Stylianou, Executive Director for Indication Investments, told Finance Magnates. "We are fully cooperating with the CySEC on all aspects and firmly maintain that we have been and continue to be in full compliance of all regulations. Our immediate focus is on our customers, ensuring that they are not adversely affected by the situation, while we work with the regulator to recall the suspension."

Indication Investments gained the CySEC license in 2012 and is operating Libertex.com with it. Furthermore, the broker is regulated in other jurisdictions and offers services globally.