The retail
trading brand Brokereo is no longer a member of the Investors Compensation Fund
(ICF) managed by the Cyprus Securities and Exchange Commission (CySEC), the
regulator announced today (Tuesday).
The removal
of Neo Premium Investments (NPI) Ltd., which offered its retail FX/CFD trading
services through the brokereo.com website, follows CySEC’s earlier decision to
revoke the Cypriot Investment Firm (CIF) license held by the company.
According
to a document published by CySEC on February 13, the loss of ICF membership
status does not mean that clients have lost their rights to maintain any
compensations arising from the past activities of Brokereo or NPI.
“The
Cyprus Securities and Exchange Commission wishes to inform the public that, the
Investors Compensation Fund has withdrawn the ICF membership of the member Neo
Premium Investments (NPI) Ltd.,” CySEC stated in an official announcement.
The
regulator also reminds that this is a natural step after the earlier decision
to withdraw the CIF license, which the company had been utilizing since 2013
(license number 189/13). The
decision, announced last November, was not due to any misconduct by the company
but was based on its own decision to renounce the authorization.
Source: CySEC
ICF Membership List
Narrows
The ICF
roster continues to shrink as NPI becomes the latest firm to be removed from
the ICF registry this year. Mid-January saw CySEC revoke the membership of four
other companies: Stone Edge Capital Ltd, Holiway Investments Ltd, FXBFI Broker
Financial Invest Ltd, and KAB Strategy Ltd.
For KAB
Strategy, the license withdrawal came in the latter half of 2023, subsequent to
the firm’s own decision to give up its license. Similarly, FXBFI Broker
Financial Invest voluntarily surrendered its license, a decision coming in the
wake of a series of regulatory actions taken against the company previously.
The
regulatory body highlighted that the company failed to implement adequate
anti-money laundering and counter-terrorism financing policies, controls, and
procedures necessary to mitigate and manage risks. Consequently, FXBFI, which
operated 101investing, was fined €50,000.
The
cancellation of licenses for Stone Edge Capital and Holiway Investments was
precipitated by CySEC investigations that uncovered violations of CIF
authorization terms by these entities. In May, CySEC noted that Stone Edge
Capital had fallen short of meeting organizational requirements, lacking
adequate systems to detect transactions that could be linked to money
laundering. Furthermore, it failed to establish internal reporting systems and
procedures.
The retail
trading brand Brokereo is no longer a member of the Investors Compensation Fund
(ICF) managed by the Cyprus Securities and Exchange Commission (CySEC), the
regulator announced today (Tuesday).
The removal
of Neo Premium Investments (NPI) Ltd., which offered its retail FX/CFD trading
services through the brokereo.com website, follows CySEC’s earlier decision to
revoke the Cypriot Investment Firm (CIF) license held by the company.
According
to a document published by CySEC on February 13, the loss of ICF membership
status does not mean that clients have lost their rights to maintain any
compensations arising from the past activities of Brokereo or NPI.
“The
Cyprus Securities and Exchange Commission wishes to inform the public that, the
Investors Compensation Fund has withdrawn the ICF membership of the member Neo
Premium Investments (NPI) Ltd.,” CySEC stated in an official announcement.
The
regulator also reminds that this is a natural step after the earlier decision
to withdraw the CIF license, which the company had been utilizing since 2013
(license number 189/13). The
decision, announced last November, was not due to any misconduct by the company
but was based on its own decision to renounce the authorization.
Source: CySEC
ICF Membership List
Narrows
The ICF
roster continues to shrink as NPI becomes the latest firm to be removed from
the ICF registry this year. Mid-January saw CySEC revoke the membership of four
other companies: Stone Edge Capital Ltd, Holiway Investments Ltd, FXBFI Broker
Financial Invest Ltd, and KAB Strategy Ltd.
For KAB
Strategy, the license withdrawal came in the latter half of 2023, subsequent to
the firm’s own decision to give up its license. Similarly, FXBFI Broker
Financial Invest voluntarily surrendered its license, a decision coming in the
wake of a series of regulatory actions taken against the company previously.
The
regulatory body highlighted that the company failed to implement adequate
anti-money laundering and counter-terrorism financing policies, controls, and
procedures necessary to mitigate and manage risks. Consequently, FXBFI, which
operated 101investing, was fined €50,000.
The
cancellation of licenses for Stone Edge Capital and Holiway Investments was
precipitated by CySEC investigations that uncovered violations of CIF
authorization terms by these entities. In May, CySEC noted that Stone Edge
Capital had fallen short of meeting organizational requirements, lacking
adequate systems to detect transactions that could be linked to money
laundering. Furthermore, it failed to establish internal reporting systems and
procedures.
