Cyprus Regulator Revokes Neo Premium Investments' CIF License

Thursday, 02/11/2023 | 17:13 GMT by Jared Kirui
  • CySEC stated that the action is aimed at protecting investors.
  • The decision was reached in a meeting held on October 23.
CySEC

The Cyprus Securities and Exchange Commission (CySEC) has taken decisive action against Neo Premium Investments (NPI) Ltd. The regulatory body announced the withdrawal of NPI's Cyprus Investment Firm (CIF) authorization today (Thursday).

Following the withdrawal of NPI's CIF authorization, the firm is facing a series of challenges, including the cessation of its activities as a CIF. According to the regulator, this action is intended to ensure that the regulated companies adhere to the highest standards of financial practices, mitigating risks and protecting investors.

CySEC's Firm Stand on Compliance

CySEC maintains that companies must comply with the regulations, uphold their fiduciary responsibilities, and prioritize the welfare of their investors. The decision to withdraw NPI's license was officially reached during a meeting held on October 23, 2023.

Source: CySEC

Last month, CySEC warned the Board Members of CIFs to enhance performance and prioritize integrity and high ethical standards. Dr George Theocharides, the Chairman of CySEC, stressed that Cyprus remains open for business but only for those entities that adhere to rigorous regulatory standards.

Separately, CySEC issued a directive to CIFs in a recent notice, drawing their attention to the product intervention measures established by the Comisión Nacional del Mercado de Valores (CNMV) in Spain. These measures, effective from August 3, 2023, are designed to safeguard the interests of retail investors in the country, mainly concerning contracts for difference (CFDs) and other leveraged products.

Regulatory Push to Safeguard Retail Investors

In light of advertisement restrictions, the CNMV resolution is prohibiting the advertisement of CFDs and other leveraged instruments to retail investors. This restriction is intended to limit the exposure of retail investors to high-risk financial products. CySEC emphasized the importance of financial firms adhering to the product intervention measures set by CNMV.

Besides that, the CNMV has imposed restrictions on specific remuneration policies and sales techniques related to CFDs and leveraged products. These limitations are designed to prevent aggressive or inappropriate marketing and sales tactics.

The Cyprus Securities and Exchange Commission (CySEC) has taken decisive action against Neo Premium Investments (NPI) Ltd. The regulatory body announced the withdrawal of NPI's Cyprus Investment Firm (CIF) authorization today (Thursday).

Following the withdrawal of NPI's CIF authorization, the firm is facing a series of challenges, including the cessation of its activities as a CIF. According to the regulator, this action is intended to ensure that the regulated companies adhere to the highest standards of financial practices, mitigating risks and protecting investors.

CySEC's Firm Stand on Compliance

CySEC maintains that companies must comply with the regulations, uphold their fiduciary responsibilities, and prioritize the welfare of their investors. The decision to withdraw NPI's license was officially reached during a meeting held on October 23, 2023.

Source: CySEC

Last month, CySEC warned the Board Members of CIFs to enhance performance and prioritize integrity and high ethical standards. Dr George Theocharides, the Chairman of CySEC, stressed that Cyprus remains open for business but only for those entities that adhere to rigorous regulatory standards.

Separately, CySEC issued a directive to CIFs in a recent notice, drawing their attention to the product intervention measures established by the Comisión Nacional del Mercado de Valores (CNMV) in Spain. These measures, effective from August 3, 2023, are designed to safeguard the interests of retail investors in the country, mainly concerning contracts for difference (CFDs) and other leveraged products.

Regulatory Push to Safeguard Retail Investors

In light of advertisement restrictions, the CNMV resolution is prohibiting the advertisement of CFDs and other leveraged instruments to retail investors. This restriction is intended to limit the exposure of retail investors to high-risk financial products. CySEC emphasized the importance of financial firms adhering to the product intervention measures set by CNMV.

Besides that, the CNMV has imposed restrictions on specific remuneration policies and sales techniques related to CFDs and leveraged products. These limitations are designed to prevent aggressive or inappropriate marketing and sales tactics.

About the Author: Jared Kirui
Jared Kirui
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Jared is an experienced financial journalist passionate about all things forex and CFDs.

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