The Cyprus Securities and Exchange Commission (CySEC) has revoked its previous decision to suspend the authorization of Cyprus Investment Firm (CIF) VPR Safe Financial Group Ltd. The regulatory body stated that the FX/CFD retail trading brand Alvexo operator has met all compliance requirements.
CySEC Revokes Its Decision to Suspend Alvexo's FX/CFD License
CySEC initially suspended VPR Safe Financial Group Ltd's authorization in August 2022. However, the firm has since demonstrated compliance with several key regulatory requirements, leading to the lifting of the suspension. Therefore, the regulatory body decided to reverse its earlier decision.
The license suspension a year ago occurred due to alleged violations of licensing rules by CIF or its tied agent in France, France Safe Media. As a result, the company was unable to provide its services or offer products in France.
Importantly, this was not Alvexo's first encounter with CySEC. In March 2021, the company agreed to a settlement of €100,000 for possible violations of CySEC laws.
How CySEC Explains Its Decision
For example, VPR Safe Financial Group Ltd has met the organizational requirements in Section 17(2) of the Investment Services and Activities and Regulated Markets Law 2017. The firm has also acted fairly, honestly, and professionally when providing investment or ancillary services to clients, as Section 25(1) of the Law stipulated.
Moreover, the company ensured that all its communications, including marketing materials, were fair, clear, and not misleading, in line with Section 25(3)(a) of the Law. The firm also complied with Article 42 of Regulation (EU) No 600/2014, particularly concerning prohibiting participating in circumvention activities related to CFDs.
In addition, VPR Safe Financial Group Ltd has fulfilled its obligation to ensure that its representatives have the necessary knowledge and skills to provide investment advice, as required by Section 26(1) of the Law. On top of that, the company obtained sufficient information from clients to assess the suitability of its investment products, as per Section 26(3)(a).
Lastly, the firm has been vigilant in monitoring the activities of its tied agents to ensure ongoing compliance with the Law, fulfilling the criteria set out in Section 30(2)(b).
Unlike Alvexo, FTX EU Ltd, a remnant of the successful crypto exchange FTX, was less fortunate. CySEC announced this week that the suspension of its license has been extended until March 2024.
