The Cypriot financial regulator has announced its withdrawal of the CIF license by Stocks Forex AF Ltd. The company used to operate under the Forex4group brand.
The Cyrus Securities and Exchange Commission (CySEC) announced on Thursday that Stocks Forex AF Ltd would be no longer in operation. The operator withdrew the company’s license after requesting the said company to renounce its CIF license because it was entering into liquidation.
Entering into liquidation
According to an announcement issued by the company, it would be entering into liquidation and returning all funds belonging to its customers.
The company added that it had voluntarily relinquished its brokerage license, and it was headed to the initial steps of a liquidation process.
“Stocks Forex AF has voluntarily asked for the renunciation of its brokerage license after returning all funds to the clients. The company is currently looking at the liquidation process,” the company stated on its website.
Stocks Forex AF had acquired its CIF trading license in 2015, where it offers various trading services in forex and CFDs. The company had also established measures that would help it expand its operations in the region.
The licence for the company was withdrawn by the CySEC earlier in the month under the guidelines stipulated in the Investment Services and Activities and Regulated Markets Law.
At the beginning of this week, CySEC had revoked the license of Rodeler Ltd. The company was having issues with the regulator because of non-compliance. The firm’s license was revoked because of offering 24Option, a trading service that has been banned in the UK. Rodeler had also revoked its license the same as Stocks Forex AF, but the company had faced severe non-compliance issues across the European region.
Before Rodeler Ltd lost its license, the company had again faced another compliance issue last year. It was required to pay a fine of 280,000 euros after a temporary suspension of its operating license for multiple breaches in the UK. The firm was also banned from operating in several countries in the European region.
The CySEC also recently issued another report stating that the regulator had found various compliance breaches in the operations of regulated companies. The areas of concern that the regulated companies were having non-compliance issues were AML/CFT. In addition, the company has also fined several of these companies for other compliance violations. These measures show about the strictness of the regulator in enforcing regulations.