The Cypriot financial supervisory commission has taken decisive action this week, suspending shareholder rights due to management issues at the regulated retail broker TriumphFX.
This complex case centers on the sole indirect shareholder, Chong Chun Hseung, and prior warnings issued by Asian regulatory bodies.
TriumphFX, however, has been under regulatory scrutiny for an extended period, as recent developments reveal.
Search results unearth posts from a decade ago, where retail traders accused the broker of engaging in activities resembling a financial pyramid scheme.
On Thursday, Finance Magnates reported that the Cyprus Securities and Exchange Commission (CySEC) has initiated enforcement measures against the local investment firm Triumph Int. (Cyprus) Ltd, the entity operating the TriumphFX trading brand.
CySEC has taken stringent actions in response to the situation.
They have suspended Hseung’s voting privileges, which were previously exercised through the company’s direct shareholder, CCH Triumph Cyprus Trust.
Additionally, CySEC has imposed a two-year ban on Triumph’s executive directors, Christoforos Christoforou and Joel Prakash Benedict, preventing them from assuming management responsibilities.
CySEC’s assessment is that Hseung’s influence on TriumphFX is detrimental to the firm’s stability and prudent management.
This concern aligns with warnings issued by regulators in Singapore and Malaysia in 2021 and 2020, respectively.
Notably, TriumphFX had already drawn the attention of Asian regulators as far back as 2015. The Hong Kong Securities and Futures Commission (SFC) issued a warning regarding Triumph Global (Asia) Limited and its TFX Global brand.
This entity used a local address to provide services to clients in Hong Kong without the necessary SFC licenses and was managed by Triumph International Limited, based in the British Virgin Islands.
According to the CySEC register, Triumph Int. (Cyprus) Ltd has held a financial services license since 2016.
Intriguingly, this license was previously associated with G.S.E Golden Sky Europe Ltd before being acquired by companies affiliated with TriumphFX.
While this acquisition does not establish wrongdoing, it highlights that the operator of the TriumphFX brand took over a licensed business from the European Union to ensure legal operation.
The broker’s actions must align with regulations and avoid significant concerns with the regulator.
The unfolding story is expected to continue, particularly as traders from various regions, especially Malaysia, allege that TriumphFX was involved in multi-level marketing activities at one point.
Public opinions about the broker’s activities are diverse and remain a subject of online discourse.