CySEC Suspends CIF Licenses of Maxigrid and Maxiflex

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 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) announced on Friday that it has suspended the Cyprus Investment Firm (CIF) license of Maxiflex Ltd and Maxigrid Ltd. According to the orders, the directives were issued under suspicion of alleged violations of the ‘Investment Services and Activities and Regulated Markets Law,’ which could constitute a threat to the market’s integrity.

That said, the Cypriot financial watchdog established a deadline of one month for the companies to take the necessary provisions to comply with the rulings and restore their CIF licenses.

With the decision in place, both Maxiflex Ltd and Maxigrid Ltd are not allowed to provide and carry out investment services or activities, enter into any business transaction with any person and accept any new client. Moreover, the firms cannot run advertising campaigns promoting themselves as a ‘provider of investment services’.

“The Company, provided this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05: 2.1. Complete all its own transactions and those of its clients which are before it, in accordance with client instructions. 2.2. Return all funds and financial instruments which are attributable to its clients,” the watchdog added in both orders.

As of press time, the Maxigrid website remains responsive stating that it holds a valid CySEC CIF license.

London Capital Group's License Suspension

Last month, CySEC announced the withdrawal of the CIF license of London Capital Group (Cyprus) Ltd., citing multiple violations of mandatory compliance requirements. In addition, according to the regulator, the broker failed to appoint at least two people as directors. The Cypriot regulator decided to withdraw the broker’s license on June 14 in a meeting.

Furthermore, the broker was ordered to “ensure it does not provide investment and ancillary services, other than those that are necessary for the completion of the pending transactions on behalf of the Company and its clients, as per their instructions.”