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The Cyprus Securities and Exchange Commission (CySEC) has announced that two Cyprus Investment Firms (CIFs) lost their licenses. Earlier this month, CySEC removed Arumpro Capital Ltd’s CIF authorization following the firmâ€s decision to give up its license.
Arumpro Capital Ltd said it decided to stop offering investment services and activities under the Investment Services and Activities and Regulated Markets Law of 2017.
Arumpro Capital Ltd Stops Its Investment Services
In a statement on its website, Arumpro Capital Ltd explained that it was sad to inform customers about the decision to give up its license.
The company also said it was stopping its investment services and activities. The firm thanked its customers and investors for the trust they had shown over the years. Arumpro Capital Ltd also shared that all open positions had been closed and access to trading accounts has also been closed.
Arumpro Capital Ltd was contacted for comment, but at the time of writing, the company had not yet responded.
CySEC also withdrew the CIF authorization of Greenpost Trading Europe Ltd on November 4, 2024. The company, just like Arumpro Capital Ltd, chose to give up its license under the same legal rules.
CySEC reminded other Cyprus Investment Firms about a rule from the Polish Financial Supervision Authority (UKNF) regarding how investment firms can use referral and affiliate programs.
CySEC Highlights UKNF Rule On Referral Programs For Investment Firms
According to the UKNFâ€s position, clients of investment firms or unregulated middlemen are not allowed to use these programs to get new clients. CySEC shared that UKNFâ€s rule means only people from inside the investment firms, or agents working for them, can get new clients.
People from outside the firms cannot take action to attract new clients for investment services. The UKNF also said that only the firms or their agents can share details about what services they offer.
This reminder by CySEC shows how important it is for firms to follow rules when working across different countries, especially if they use affiliate or referral programs to get clients.
It also shows how serious CySEC is about making sure that investment firms follow rules and that their clients are protected.
CySEC is the financial watchdog in Cyprus, and it follows European rules for financial activities. CySEC started in 2001, and since then, many brokers, especially forex brokers, have worked with CySEC to be recognized. Before 2018, many brokers in binary options also used CySEC to be their regulator.
