In a new notice, CySEC, the financial watchdog of Cyprus has notified everyone about their decision to suspend the CIF license for the trading of FX Broker based in Limassol, IGM Forex Ltd. In the notice, the regulating body has stated that they have undertaken the decision to suspend the company was based on the inadequacy that they found in the capital and funds requirements that the IGM Forex has shown.
As per the notice published, it was informed that the CySEC or Cyprus Securities and Exchange Commission has taken the action against the IGM Forex under the violation of rules and regulations by the company stated under section 71(6) (c) of the Τhe Investment Services and Activities and Regulated Markets Law of 2017 (L.87(I)/2017) in coalition with the rules stated in the Section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation.
The financial regulating body has taken actions under the light of different suspicions that have been raised against IGM Forex. CySEC has allegedly charged the company under the violation of certain clauses that are mentioned below:
- Article 92(1) of Regulation (EU) 575/2013
- Section 10(1) of The Investment Services and Activities and Regulated Markets Laws of 2007 to 2016 (L.144(I)/2007) and Article 93(1) of Regulation (EU) 575/2013
The allegations that CySEC has brought against the IGM Forex are very serious. If these allegations are true, then it jeopardizes the safety of the investors and clients of the company. Furthermore, it disrupts the integrity of the Forex and securities market completely. CySEC has also provided the company with a deadline of 15 days to clear the allegations brought against them by complying with provisions that are mentioned above.
However, as long as the suspension is in action, IGM Forex has to follow the following regulations under the directives of section 9 of DI87-05:
- The company will not have the permission to offer investment services; carry out any new transaction with any client or individual and promote itself as a Forex broker.
- However, the company is allowed to finish the transactions of the clients or its own initiated before the suspension came into force. Furthermore, IGM will also have to return the funds as well as any other financial tool that belong to the clients.