CySEC confirms Otkritie Capital’s withdrawal from Investors Compensation Fund
The Cyprus Securities and Exchange Commission (CySEC) today confirmed that the Investors Compensation Fund (ICF) has withdrawn the ICF membership of Forex broker Otkritie Capital Cyprus Ltd.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.
Let’s recall that, in January 2021, the financial regulator announced the withdrawal of the CIF authorization of Otkritie Capital Cyprus Ltd, due to the company’s decision to expressly renounce it.
Otkritie Capital Cyprus Ltd is controlled by Russia’s Otkritie FC Bank, one of Russia’s largest full-service commercial banks.It was co-founded by Igor Finogenov, now CEO of the Eurasian Development Bank. In August 2017 Otkritie was bailed out by the Central Bank of Russia, at a reported cost to the state of over $8 billion. The central bank later described Otkritie’s capital as “largely fictitious”. The Central Bank of Russia now holds a 99% ownership interest in Otkritie.
The Otkritie group actually owns another CySEC licensed entity called Otkritie Broker Ltd. That CIF authorization is still valid, although the company has not been operating actively.