The Cyprus Securities and Exchange Commission (CySEC) today announces that the authorisation of the Cyprus Investment Firm Maxigrid Ltd, operator of brands such as Dualix and AGM Markets, is suspended in whole.

The regulator explains that there are suspicions of the firm’s alleged violations of:

• 1. Section 5(5) of The Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’) as the Company appears to conduct business and/or to be engaged in the conducting business and/or to facilitate the conducting of business not stated in its authorisation.
• 2. Section 22(1) of the Law as the Company does not appear to comply at all times with the authorisation conditions in sections 9(2) – suitability of members of the management body, and 11(1)(b) – suitability of shareholder, of the Law.

Within one month, Maxigrid must take the necessary actions in order to comply with the aforementioned provisions.

While the suspension of the authorisation is in force, the company is not permitted to:

• Provide/carry out investment services/activities.
• Enter into any business transaction with any person and accept any new client.
• Advertise itself as a provider of investment services.

The company, provided this is consistent with the wishes of its existing clients, may proceed with certain actions, such as completion of all of its own transactions and those of its clients which are before it, in accordance with client instructions. It can also return all funds and financial instruments which are attributable to its clients.

As FX News Group has reported, in March this year, CySEC said a settlement had been reached with Maxigrid for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 – L.87(I)/2017. The settlement follows an investigation which involved assessing, for the period January 2019 until August 2020, the company’s compliance with:

• Article 25(1) of the Law, regarding general principles and information to clients.
• Article 5(5)(b) of the Law, regarding the requirement for CIF authorization.

The settlement reached with the company for the possible violations is for the amount to €75,000.

In June 2020, the UK Financial Conduct Authority (FCA) banned Maxigrid Limited. The FCA noted that its action came after the CFD provider had decided to cease to provide any investment services in the UK.