The Cyprus Securities and Exchange Commission (CySEC) announces its decision to withdraw the Cyprus Investment Firm authorisation of London Capital Group (Cyprus) Ltd with number 341/17.

The CIF authorization of the company is withdrawn pursuant to articles 76(1)(c) and 8(1)(c) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’), due to the Company’s non-compliance with article 22(1) of the Law, as LCG failed to comply at all times with the conditions for granting CIF authorisation set out in articles 9(16), 17(1) and 17(2) of the Law.

Specifically, the company does not comply at all times with:

1. the condition for granting CIF authorisation set out in article 9(16) of the Law, since the business of the Company is not effectively directed by at least two persons who meet the requirements of articles 9 and 10 of the Law.

2. the conditions for granting CIF authorisation set out in articles 17(1) and 17(2) of the Law, as specified in article 22(3)(b) of the Delegated Regulation (EU) 2017/565, since it did not establish adequate policies and procedures to ensure its compliance, including the compliance of its managers and employees, with its obligations under the Law, as it did not ensure that its compliance officer, who is responsible for the compliance function and for any reporting as to compliance required by Directive 2014/65/EU and Article 25(2) of the Delegated Regulation (EU) 2017/565, has been replaced by the management body.

Due to the withdrawal of the Company’s authorisation, the Company should:

• Publish on all its websites an announcement informing the public about the withdrawal of its license, as well as the procedure to be followed by its clients, for the completion of their transactions, the return of their funds and financial instruments, as well as for the submission of any complaints.
• Return all funds and financial instruments belonging/attributable to its clients, including any profits.
• Examine and resolve all client complaints submitted to the Company.
• Ensure it does not provide investment and ancillary services, other than those that are necessary for the completion of the pending transactions on behalf of the Company and its clients, as per their instructions.

Let’s recall that, earlier this year, CySEC imposed a fine of €40,000 on London Capital Group (Cyprus) Ltd.

The fine was issued for LCG’s non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, as further specified in Articles 2 and 3(8) of the Delegated Regulation (EU) 2016/957 supplementing Regulation (EU) 596/2014, as it does not maintain effective arrangements and procedures to detect and report suspicious orders and transactions, which also ensure the monitoring those.