The Cyprus Securities and Exchange Commission (CySEC) announced on Wednesday that it has withdrawn the Investors Compensation Fund (ICF) membership of three companies: Daweda Exchange Ltd, London Capital Group (Cyprus) Ltd and Felicitas Management Investment Services Ltd.
All of these companies have lost their Cyprus Investment Firm (CIF) license over the past few years for one reason or the other.
ICF members are entitled to receive fund protection of up to €20,000 protection for each of their clients, which is provided by the Cyprus financial market regulator. The withdrawal of the ICF membership is the result of losing the CIF membership.
“The loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients,” the regulator explained.
Non-Compliant Firms
Daweda lost its CIF license in 2020. The company was blamed for onboarding European Union clients under an offshore entity based in the British Virgin Islands without informing them.
The London Capital Group is another controversial firm that is already facing liquidation in the United Kingdom. The Cypriot entity of the company was blamed by the regulator for multiple violations of mandatory compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
Read this Term requirements, resulting in the withdrawal of its CIF license.
Earlier in January, the Cyprus regulatory withdrew the licenses of SonaFX operator Sonaf Business and Belight Capital Group as none of them were holding CIF licenses anymore. Last year too, many Cyprus financial services companies lost ICF memberships as they were no longer providing regulated services in the jurisdiction.
The Cyprus Securities and Exchange Commission (CySEC) announced on Wednesday that it has withdrawn the Investors Compensation Fund (ICF) membership of three companies: Daweda Exchange Ltd, London Capital Group (Cyprus) Ltd and Felicitas Management Investment Services Ltd.
All of these companies have lost their Cyprus Investment Firm (CIF) license over the past few years for one reason or the other.
ICF members are entitled to receive fund protection of up to €20,000 protection for each of their clients, which is provided by the Cyprus financial market regulator. The withdrawal of the ICF membership is the result of losing the CIF membership.
“The loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients,” the regulator explained.
Non-Compliant Firms
Daweda lost its CIF license in 2020. The company was blamed for onboarding European Union clients under an offshore entity based in the British Virgin Islands without informing them.
The London Capital Group is another controversial firm that is already facing liquidation in the United Kingdom. The Cypriot entity of the company was blamed by the regulator for multiple violations of mandatory compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others.
Read this Term requirements, resulting in the withdrawal of its CIF license.
Earlier in January, the Cyprus regulatory withdrew the licenses of SonaFX operator Sonaf Business and Belight Capital Group as none of them were holding CIF licenses anymore. Last year too, many Cyprus financial services companies lost ICF memberships as they were no longer providing regulated services in the jurisdiction.
Source: https://www.financemagnates.com/forex/brokers/cysec-withdrew-icf-membership-of-daweda-lcg-cyprus-and-felicitas/