CySEC Suspends AFX Capital Markets License

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CySEC Suspends AFX Capital Markets License

The Cyprus Securities and Exchange Commission (CySEC) has announced that AFX Capital Markets' license has been temporarily suspended due to suspicions of non-compliance with regard to protecting client funds.

In particular, the regulator stated that “there are suspicions of an alleged breach of Section 22(1) of the Act due to the Company’s likely failure at all times to comply with the licensing requirement of Section 17(9) (Regulatory Requirements) of the Act, as defined in paragraphs 4, 6 and 9 of Directive DI87-01, Concerning the Protection of Client Funds”.

The broker's license has been suspended for a period of ten days, during which time the company must take the necessary measures to comply with the legal provisions in force in Cyprus. Until then, AFX Capital Markets is not permitted to carry out investment services or activities, accept new clients or advertise itself as a provider of financial services.

CySEC may take more severe measures after the ten-day period has expired. Most of the time, if a broker does not act in accordance with the instructions given and continues to break the law, the regulator prolongs the suspension period and permanently withdraws the license. For example, the Cyprus Financial Supervisory Authority withdrew the license of the parent company of the binary options broker AnyOption in the previous year.

It is worth noting that in October of last year, CySEC fined AFX Capital 50,000 euros, for violating a number of regulations.

Cyprus forex brokers are subject to a number of regulations, such as keeping clients' funds in segregated accounts, regularly reporting to CySEC, maintaining at least €730,000 at all times in the company's account, and much more. Furthermore, they must comply with all requirements presented at the EU level.


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