The Cyprus Securities and Exchange Commission (CySEC) today announced that the authorisation of Cyprus Investment Firm Mind Money Limited has been suspended.

The suspension is in line with section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the DI87-05’), as there are suspicions of an alleged violation of section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017, as in force (‘the Law’), as the company does not appear to comply at all times with the authorisation conditions in:

• Section 5(5) of the Law concerning the carrying out of activities that are not covered by its authorisation licence,
• Section 9(15) of the Law concerning the notification to CySEC of changes to its board of directors,
• Section 9(16) of the Law concerning the requirement to have two persons who effectively direct the business activities, and
• Section 11(1)(b) of the Law concerning the suitability of its shareholder.

The decision was reached as the alleged violation causes concerns and risk relating to the protection of the company’s clients and/or constitutes a threat to the orderly operation and integrity of the market.

Within one month, Mind Money must take the necessary actions to comply with the above-mentioned provisions.

While the suspension of the authorisation is in force, as provided for in section 9 of DI87-05, 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 the below actions, without such actions being considered as breach of section 7(a) of DI87-05:

• Complete all its own transactions and those of its clients which are before it in accordance with client instructions.
• Return all funds and financial instruments which are attributable to its clients.

Mind Money was formerly known as Zerich Securities Ltd.