Strict compliance enforcement leads regulator to revoke CIF licence

The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) licence of Eurotrade Investments RGB Ltd, citing the company’s failure to comply with requirements concerning its management and organisational arrangements.

The commission announced the decision on Thursday, September 17, following a board meeting held on August 3.

The decision was taken under the Investment Services and Activities and Regulated Markets Law, which governs the provision of investment services and activities and the operation of regulated markets in Cyprus.

The company held Cyprus Investment Firm authorisation number 279/15 and has the Legal Entity Identifier 549300Q82SNSBMITH078.

CySEC said the decision followed non-compliance with Articles 9(16) and 17(2) of the law.

The first provision concerns the requirement for an investment firm to have at least two people effectively directing its business activities.

The second relates to the organisational arrangements that an investment firm is required to maintain.

“CySEC reached the above decision due to the company’s non-compliance with Articles 9(16) and 17(2) of the law, namely in relation to the requirement to have at least two persons effectively directing its business activities and in relation to its organisational arrangements,” the regulator stated.

The commission said the shortcomings meant that Eurotrade Investments RGB no longer met the conditions under which its investment firm authorisation had originally been granted.

The withdrawal means the company must take a number of immediate steps concerning its activities and references to its regulatory status.

“Immediately and without any delay, ensure that all references on its websites, and elsewhere, to the provision or performance of investment services and activities, as well as to its licensing and supervision by CySEC are deleted,” the regulator stated.

The company was also instructed to investigate and resolve all customer complaints brought before it.

It must also ensure that it does not provide investment or ancillary services following the withdrawal of its authorisation.