Saturday, August 6 2022

After several months of hiatus, the Cypriot authorities are once again demonstrating their efforts and actively investigating compliance irregularities.


The Cyprus Securities and Exchange Commission (CySEC) has completely suspended the license of Maxigrid Limited (trading as Dualix & AGM Markets) because the company has significantly violated its license conditions.

CySEC has confirmed that it will maintain oversight of the company until it has assumed its responsibilities under the suspended license. Earlier in March, Maxigrid was fined € 75,000 by the Cypriot regulator for multiple regulatory violations.

According to the CySEC manifesto, Maxigrid’s CIF approval has been temporarily revoked because the company appears to “do business and / or be engaged in the conduct of business and / or facilitate the conduct of business not mentioned in its authorization” .

In addition, the regulator further explained that the company had not complied “at all times” with the authorization conditions of Articles “9 (2) – suitability of members of the management body, and 11 ( 1) (b) – suitability of shareholders, of the Law.

Interestingly, CySEC expressed the same concerns when it decided this morning to “fully suspend” the license of Maxiflex Ltd (trading under the name EuropeFX).

Both companies lost their UK license in 2020 after an investigation found Britons were offered high-risk contracts for difference (CFDs) using fake celebrity mentions on social media. The FCA, however, did not disclose the names of the celebrities used in the bogus endorsements.

The city regulator also said these firms failed to pay monies owed to investors and charge clients undisclosed fees while failing to disclose the risks of trading CFDs.

The FCA has told these brands that they are no longer allowed to solicit or accept new clients from the country, while relationships with existing clients must be terminated and they must be allowed to close their positions and withdraw. their funds.

At the time, CySEC had partially suspended the license of these companies until they took corrective action within a defined framework; otherwise, he warned that further steps would be taken, such as imposing fines and / or even revoking their licenses.

Maxigrid has 30 days to take the necessary action to comply with the specified arrangements. During this period, they cannot provide any service or enter into a business relationship with anyone and accept new clients.

In addition, the broker is not authorized to execute client orders for the purchase of financial instruments or to provide investment services inside or outside Cyprus.


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