The Cyprus Securities and Exchange Commission, or CySEC, made an announcement today. This announcement was in regard to the regulator issuing a suspension in the whole of the Cyprus Investment Firm (CIF) authorization to one Belight Capital Group Limited. Through the process of taking this action, CySEC had leveraged the power that the Investment Services and Activities and Regulated Markets Law of 2017 had granted them, hereafter referred to as the Law. Notably, Article 70(1)(F) of the Law.
The regulator went into detail on the grounds that the decision of license suspension was made. According to the Cypriot watchdog, the company has been claimed to have violated various laws. The first is Article 92(1) as well as Article 93(1) of Regulation (EU) No 575/201: These regulations focus on prudential requirements in regards to capital ratio and own funding.
Furthermore, the company allegedly violated Section 22(1) of the Law. This comes, in turn, due to Belight Capital’s possible non-compliance with sections 9(16) of the Law at all times. Section 9(16) focuses on the obligations of the company’s Board of Directors. Furthermore, the company was allegedly in breach of Section 17(1) and 17(2), as specified within Article 21(1)(d) of Regulation 2017/565, which focuses on the organizational requirements of a company.
Ensuring Safety For The Whole
Another issue comes from the company, operating under the name BelightFX, and the fact that it doesn’t seem to have provided investment services to its clients within the past six months.
The decision to summarily pull its authorizations for the CIF, stands due to the previously mentioned violations to the legal framework, as well as the risk attributed to the protection of a company’s investors while the company itself stands as a threat to the integrity and the orderly operation of the market as a whole.
15 Days To Comply
Within the next 15 days, Belight Capital Group will be mandated to take actions that will allow it to comply with the provisions mentioned above. While the suspension of the company’s authorization stands in place, it is prohibited to carry out investment activities or services. Furthermore, it may no longer enter within any business transaction with any person or otherwise accept new clients. It may also no longer advertise itself as an investment services provider within this period of time.
Should its existing clients wish to do so, the company is allowed to complete all of its transactions, as well as those transactions of its clients, which were made before it. However, this is subject purely to the desires of the customers, however.