Cypriot Investors Compensation Fund announces withdrawal of membership of three CIFs
The Cyprus Securities and Exchange Commission (CySEC) today announced the withdrawal of the Investors Compensation Fund (ICF) membership of the following members:
- Daweda Exchange Ltd,
- London Capital Group (Cyprus) Ltd, and
- Felicitas Management Investment Services Ltd.
It is noted that, in accordance with paragraph 6(3) of the Directive, 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 withdrawal of the ICF membership by the ICF was carried out after CySEC’s decision to withdraw the Cyprus Investment Firm (CIF) authorisation of Daweda Exchange Ltd, London Capital Group (Cyprus) Ltd and Felicitas Management Investment Services Ltd.
Daweda, for instance, lost its Cyprus license because it was tricking clients into thinking they were opening an account with the CySEC-licensed entity, while in reality they were being shunted to an “offshore” company in the British Virgin Islands (BVI), home to many-an-offshore-broker.
Let’s recall that, in January 2022, CySEC announced that Sonaf Business Ltd and Belight Capital Group Ltd were no longer members of the ICF.