Commission gives company one month to address regulatory issues

The Cyprus Securities and Exchange Commission (CySEC) announced on Tuesday that it had suspended the licence of Cyprus Investment Firm (CIF) Mind Money Limited over suspected breaches of regulatory requirements and concerns regarding client protection and market integrity.

The regulator said the company’s authorisation, licence number 115/10, has been fully suspended under section 10(1) of Directive DI87-05 concerning the withdrawal and suspension of authorisations.

According to CySEC, the decision relates to suspicions of alleged violations of section 22(1) of the Investment Services and Activities and Regulated Markets Law of 2017.

The commission stated that Mind Money Limited does not appear to comply at all times with several conditions attached to its authorisation.

Specifically, CySEC said there are concerns that the company carried out activities that were not covered by its licence.

The regulator also cited issues concerning the company’s obligation to notify CySEC of changes to its board of directors.

In addition, the commission referred to requirements stipulating that investment firms must have two individuals effectively directing business activities.

What is more, CySEC further raised concerns regarding the suitability of one of the company’s shareholders.

According to the regulator, these alleged violations create concerns and risks relating to the protection of the company’s clients and may also pose a threat to the orderly functioning and integrity of the market.

The commission said the company has been granted one month to take the necessary measures required to comply with the relevant provisions of the law.

For as long as the suspension remains in force, Mind Money Limited is prohibited from providing or carrying out investment services and activities.

The company is also barred from entering into business transactions with any person or accepting new clients.

In addition, the firm is not permitted to advertise itself as a provider of investment services while the suspension remains in place.

CySEC clarified that the company may nevertheless proceed with certain actions, provided these are consistent with the wishes of its existing clients.

The regulator said that Mind Money Limited may complete transactions already under way on behalf of both the company and its clients, provided these are carried out in accordance with client instructions.

It also said the company may return any funds and financial instruments belonging to clients without such actions being considered a breach of the relevant provisions of Directive DI87-05.