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The Cyprus Securities and Exchange Commission (CySEC) has announced that AMP Global Ltd. is no longer a part of the Investor Compensation Fund (ICF). CySECâ€s decision follows AMP Globalâ€s choice to give up its Cyprus Investment Firm (CIF) licenses.
According to CySEC, even though AMP Global is no longer covered by the ICF, customers who were previously protected may still qualify for compensation. This applies to any investment actions done before the license withdrawal, as long as they follow the rules listed in CySECâ€s Directive DI87-07.
CySEC Focuses On Client Protection During AMP Globalâ€s Exit
CySEC noted that the removal from the ICF will not stop compensation processes from starting for any impacted clients. Earlier, a report revealed that AMP Global, a US-based company specializing in Forex and Contracts for Difference (CFD) trading, had paused its European services. These services were previously operated through AMP Global Ltd.
AMP Global has now officially confirmed that it will not renew its CySEC license. This move has been verified by CySEC, which also confirmed that the companyâ€s CIF license is no longer valid.
AMP Global, which has been regulated by CySEC since 2018, was allowed to offer its services in Europe under this authorization. The US branch, AMP Global Clearing LLC, is still registered as a Futures Commission Merchant.
In a message shared on AMP Globalâ€s website, the company informed customers that it was in the process of giving up its CIF license, with authorization number 360/18.
The company stated that it would no longer take in new clients or open any new accounts. AMP Global also explained that it had closed accounts for all current clients, notifying them about how to get their funds back or make any needed complaints.
Additionally, CySEC reminded Cyprus Investment Firms (CIFs) about the recent stance of the Polish Financial Supervision Authority (UKNF) on referral and affiliate programs.
CySEC Strengthens Standards On Client Referral Programs
According to UKNFâ€s position in October 2023, clients of investment firms or unregulated intermediaries are not allowed to take part in certain activities. These restrictions apply to efforts aimed at attracting new clients through referral or affiliate programs.
CySEC noted that the UKNF policy prohibits clients of investment companies or unregulated intermediaries from using referral or affiliate programs. This restriction prevents them from making personal efforts to gain more customers for investment services.
CySEC is known as the main agency for financial regulation in Cyprus. As Cyprus is part of the European Union, CySECâ€s rules align with European laws. Specifically, these rules follow the Markets in Financial Instruments Directive (MiFID), which aims to harmonize financial regulations across Europe.
Since its establishment in 2001, CySEC has become popular among overseas forex brokers, with many firms registered under it. Before 2018, CySEC was also widely used as a regulator by brokers in the binary options market.
