The Cyprus Securities and Exchange Commission (CySEC) has suspended the licence for Mutual Trust Limited, a Nicosia-based financial services intermediary, to provide administrative services, saying it had violated an article of the Administrative Services Companies law.
According to a CySEC statement, Mutual Trust was given a week to comply with the law’s provisions, and, while the suspension is in force, the company may not provide or perform any administrative services.
“The above decision was reached as the aforementioned alleged violation may possibly endanger the company’s clients’ interests,” the statement said.
A CySEC official told the Cyprus Mail that the company’s administrative structure was found non-compliant as one of the two required directors is no longer with the company.
“It’s possible that they had disagreements between them, but what we have found was that one of the two directors listed in our records is no longer involved in the company,” the source said.
“They either need to work out their differences, or follow the procedures laid down in the law to reflect the company’s true picture.”
Meanwhile, the French regulator of financial markets (Autorité des Marchés Financiers) on Tuesday announced the banning of Cyprus-based foreign-exchange company Rodeler Ltd from operating in France, because it “failed to comply with certain obligations relating to providing relevant information and acting in an honest and fair manner in the best interests of its clients, to the detriment of investors residing or based in France”.
Rodeler’s regulator – the CySEC – is aware of the ban, but said it in no way affects the company’s operations elsewhere.
“The ban relates to the company’s marketing materials, which the French regulator – known to be stricter than others – believed was misleading to retailers,” the CySEC official told the Cyprus Mail.
“In any case, marketing materials are a subjective area, and the British regulator, say, may find the same material banned by the French to be perfectly acceptable. The French ban does not hinder the company’s ability to operate anywhere else.”
A company as large as Rodeler, the source added, requires a lot of oversight, but the issue over which it was banned in France is one that “obviously impacts its French operations, but not necessarily any other aspect”.