The Cyprus Securities and Exchange Commission (CySEC) this week announced the suspension of the Cyprus Investment Firm (CIF) license of W.G. Wealth Guardian Ltd.

This decision, which the commission officially made on May 28 and announced later during the week, was based on suspicions of violations of the Investment Services and Activities and Regulated Markets Law of 2017.

CySEC explained that it suspects that W.G. Wealth Guardian Ltd has not consistently met the authorisation conditions set out in the law.

Specifically, the company is believed to have violated initial capital requirements as detailed in section 16 of the law and section 9(3) of the Prudential Supervision of Investment Firms Law of 2021.

Additionally, there are concerns about the safeguarding of client financial instruments and funds, as well as the depositing of client funds, as specified in section 17(9) of the law and further detailed in Directive DI87-01.

The alleged violations have raised concerns about the protection of the company’s clients and the integrity of the market.

As a result, CySEC has decided to suspend the company’s authorisation under section 10(1) of Directive DI87-05 for the Withdrawal and Suspension of Authorisation.

Moreover, the commission stated that W.G. Wealth Guardian Ltd has one month to take necessary actions to comply with the relevant provisions.

During the suspension period, the company is prohibited from providing investment services, entering into business transactions, accepting new clients, and advertising itself as a provider of investment services.

However, the company is allowed to complete existing transactions and return funds and financial instruments to its clients, in line with their wishes.