Cyprus financial regulator CySEC has recalled the license suspension it authorized against Depaho Ltd. The company controls GTCM, TradeApp, and the FXGM retail forex brand.
Depaho’s license was first suspended in July before it was extended twice in September and October.
However, the regulator says it has been satisfied that the firm is now compliant with the regulation that resulted in the suspension.
CySEC says the firm has adopted corrective measures to prevent violations of the Regulated Markets Law 2007.
CySEC Says Depaho Has Met Regulatory Requirements
The financial watchdog has regulatory control over Depaho, which means it has to be compliant with its laws. The broker offers its services across Europe and the CIF trading license issued by CySEC67 is required to continue such service.
After the suspension, the regulator gave the FXGM parent several deadlines to make amends and comply with the law to get its license back.
According to CySEC, the firm had issues with its organizational requirements and some problems implementing its conflict of interest policy.
Depaho was also suspended for offering investment advice without getting authorization to do so. The watchdog also had issues with Depaho’s marketing tactics. CySEC says the company is recommending some financial instruments to its clients who do not understand the nature of the instruments.
As a result, the clients do not have the right information about the risk of the advertised instrument before investing.
CySEC also accused the broker of outsourcing its market activities to third parties. In most cases, these third parties misrepresented the qualification of the staff to prospective clients. They tell the clients that the person has several years of experience in the industry which is entirely not true.
CySEC Intensifies Regulatory Efforts
The Cyprus financial watchdog is now flexing its muscles in the financial sector after several months of inactivity.
Earlier this year, CySEC issued warnings to fraudsters acting as representatives to the regulator. It has also suspended the license of some operators in the country and suspended some Forex brokers that were promoting risky products in the UK. Some of the brokers were also given deadlines to fix their issues if they want to regain their license.