PriorFX / Prior Capital has license suspended by CySEC
After temporarily suspending the company back in March, Cypriot financial regulator CySEC announced today that it was withdrawing the CIF license of Prior Capital Cy Ltd. Prior Capital operates the PriorFX and Prior Capital (priorcapital.eu) retail FX, CFDs, and crypto trading website.
The original suspension came on the heels of the regulator stating that there are suspicions of an alleged violation of rules being made by Prior Capital regarding the safeguarding of clients’ funds.
The complete decision issued by CySEC reads as follows:
2 July 2020
Announcement date: 02.07.2020; CySEC Decision date: 22.06.2020
Regarding: Prior Capital Cy Ltd
Legislation: The Investment Services and Activities and Regulated Markets Law
Subject: Withdrawal of CIF authorisation
The Cyprus Securities and Exchange Commission (‘the CySEC’), following the decision published on 6 March 2020, announces that, at its meeting of 22 June 2020, decided to withdraw the Cyprus Investment Firm authorisation of Prior Capital Cy Ltd (‘the Company’), with Number 221/13, pursuant to article 9(3)(b) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation and to articles 8(1)(c) and 71(6)(c) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).
CySEC reached to the above decision as it was not satisfied with the Company’s compliance with article 22(1) of the Law, as to fulfilling at all times the condition of article 17(9) of the Law, as further specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the safeguard of clients’ funds, hence meeting the conditions under which its authorisation was granted.
Due to the withdrawal of the Company’s authorisation, the Company should:
(i) Ensure it does not provide investment and ancillary services.
(ii) Immediately and without delay, ensure that all references in its websites and anywhere else, relating to the provision/carrying out of investment services/activities, as well as references to its licensing and regulation by the CySEC, are deleted.
CySEC’s investigation continues into the matters relating to the Company.