Cyprus Securities and Exchange Commission (CySEC ) announced today that the authorisation of Cyprus Investment Firm, UBFS Invest, powered by Moneychoice Brokers Ltd, continues to be suspended in contravention of the Investment Services and Activities and Regulated Markets Law 2007.
Finance Magnates first reported on the action taken by CySEC on 27th May when it first announced the company's suspension following several allegations of multiple violations.
Violations of the Law
UBFS Invest originally had its licence put on hold due to its failure to protect its clients’ funds. The company was also pulled up for having funds which were less than the sum of its capital requirements and for having a total capital ratio of less than the requirements of the Regulation .
The decision was reached due to the fact that the alleged violations could endanger the company’s clients’ interests and more generally, the smooth operation of the capital market.
Suspension of Services
UBFS Invest is obliged to take action in order to comply with the necessary provisions within one month. While the suspension of the authorisation is in force, the company will not be able to provide any services, enter into a business relationship with any person or take on any new clients.
In addition, the company is not allowed to receive, transmit or execute any orders from clients for buying financial instruments, provide any investment services inside or outside Cyprus in member states or advertise itself as an investment services provider.
Website
The company, which appears to offer portfolio management and brokerage services, put a notice on its website on 27th May saying that the company’s CIF licence had been suspended for 30 days. This has yet to be updated to reflect the continuation of the suspension.
