CySEC Revokes ICF Membership of Brokerages Trilt and RMG Holdings

Tuesday, 09/05/2023 | 13:08 GMT by Solomon Oladipupo

Trilt and RMG's licenses were withdrawn last month and in April 2022, respectively.

ICF compensation is open to clients of both firms covered before the termination.

The Cyprus Securities and Exchange Commission (CySEC) has taken retail FX/CFDs broker Trilt and brokerage services provider RMG Holding Limited off the Investor Compensation Fund (ICF). The ICF is a fund that provides protection to clients of Cyprus Investment Firms (CIFs) when claims arise against member companies.

The Cypriot watchdog announced the development on Tuesday in a statement, noting that it took the decision after reversing both companies’ CIF authorizations. Furthermore, the market supervisor pointed out that the loss of the ICF membership does not translate to the loss of rights of clients covered under the funds to receive compensation for investment deals done before both firms' ICF memberships were terminated.

In addition, the withdrawal does not also hinder the initiation of compensation procedures for the covered clients, CySEC said, adding that coverage for these types of clients is dependent on the conditions stated in its directive for the operation of the ICF.

CySEC Withdraws CIF License of Trilt and RMG

CySEC announced the withdrawal of Trilt’s license last month, increasing the number of CIF license withdrawals since January to at least five. The regulator noted that it made the decision on March 20th after Trilt chose to ‘expressly renounce’ the license.

Trilt obtained CySEC's CIF license in October 2014 and operated as an electronic communication network and straight-through processing brokerage. The firm offered forex and CFDs trading on MetaTrader and also provided its clients with mobile and web-based trading platforms.

On the other hand, CySEC disclosed the withdrawal of RMG Holding’s license in April last year. The license was cancelled alongside that of ED&F MAN Capital Markets CEEMA Limited after RMG also decided to voluntarily give up the license.

RMG Holding, which has been offering brokerage services since 1995, noted at the time on its website that it decided to discontinue its services “after a careful review of our business.” On top of that, the firm got its CIF license in 2004 and was particularly active with Russian, US and London Stock Exchange-traded stocks and depositary receipts.

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