In a regulatory ruling, the Cyprus Securities and Exchange Commission (CySEC) has declared the withdrawal of Cyprus Investment Firm (CIF) authorisation from Leverate Financial Services Ltd.
The ruling, enacted during CySEC’s session on December 4, 2023, ensued the company’s explicit renunciation of its authorisation.
The recent decision by the company to voluntarily renounce its authorisation has spurred CySEC to take action in accordance with pertinent provisions of the Investment Services and Activities and Regulated Markets Law.
The revocation of CIF authorisation effectively prohibits Leverate Financial Services Ltd from sustaining its operations within the regulatory framework supervised by CySEC.
The declaration does not reference any judicial review associated with the decision, signifying that the withdrawal of authorisation stands as conclusive, pending any subsequent legal developments.
Established in 2008, Leverate has transformed into a technology and services provider within the brokerage industry.
It has expanded globally and currently engages 150 individuals, compared to its initial 4-person team.
The company offers dedicated account managers, positioning itself as a notable player in the Forex brokerage sector.
Earlier, CySEC proclaimed the withdrawal of CIF authorisations for four Cyprus-based investment firms: Stone Edge Capital Ltd, Holiway Investments Ltd, FXBFI Broker Financial Invest Ltd, and KAB Strategy Ltd, as reported by Finance Magnates.
Furthermore, the Investors Compensation Fund (ICF) rescinded the membership of these firms.
The ICF’s decision to annul membership ensued CySEC’s withdrawal of CIF authorisations for the aforementioned firms.
Nonetheless, covered clients of these firms remain eligible to lodge compensation claims for investment operations conducted before the membership withdrawal, provided they meet CySEC’s eligibility criteria.
CySEC’s inquiries uncovered violations of CIF authorisation terms by Stone Edge Capital and Holiway Investments.
Stone Edge Capital was found non-compliant with organisational standards and lacked sufficient anti-money laundering (AML) systems.
Holiway Investments also encountered compliance issues.
In the instance of FXBFI Broker Financial Invest, inadequate AML/CTF policies resulted in a €50,000 penalty. KAB Strategy voluntarily renounced its licence.
CySEC’s actions underscore the significance of regulatory compliance and investor protection within Cyprus’ financial landscape.