The Cyprus Securities and Exchange Commission (CySEC) confirmed on Friday that it had completely withdrawn the Cyprus Investment Firm (CIF) license from Belight Capital Group Limited.
This is not a surprise, as Belight Capital, which operates the BelightFX retail brand, was already suspended in April 2020. When accessing the officially approved domain by CySEC, www.belightcapitaltroup.com, it did not apparently there was no negotiation on this website. even then.
The CySEC regulatory manifesto went into detail on the grounds that the license recall decision was made. In particular, BelightFX had its CIF accreditation withdrawn because its board of directors did not have the required professional experience.
BelightFX also had weaknesses in its organizational requirements which, among other things, saw the company fail to provide investment services in the six months before its license was suspended. These provisions also concern prudential requirements in terms of the capital ratio and other financial parameters.
By virtue of the aforementioned withdrawal of its authorization, BelightFX is also not authorized to passport its services to other European markets. However, the company is currently operating through offshore brands that do not have a valid license in the EU.
The exact reasons that led to this decision remain unclear, but CySEC will certainly maintain oversight of the financial services company until it has fulfilled its responsibilities under the license.
At the time, BelightFX had already made changes to its website to remove any reference to the authorization and oversight of the company by CySEC. However, this has not yet been updated to reflect the permanent withdrawal of its CIF license.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its customers and deal with all their complaints. Additionally, BelightFX must provide confirmation from its external auditor that it has no outstanding obligations to any of the company’s clients, according to the same CySEC announcement.
The regulator often gives the broker three months to fulfill his obligations arising from the also lapsed investment services, during this time he remains under the supervision of the Cypriot supervisory body.
In addition, the company must transfer the funds of those who have not withdrawn their balances to the investor compensation fund, which can be claimed in due course. In any case, BelightFX clients are still entitled to the benefits of the Investor Compensation Fund (ICF), which serves to protect the claims of covered clients and provide them with compensation in the event that a member is unable to fulfill their obligations. financial obligations.