The Cyprus Securities and Exchange Commission (CySEC) today announces that the Investors Compensation Fund (ICF) has withdrawn the ICF membership of two brokerages: Alfa Capital Holdings (Cyprus) Ltd and UGL Exchange Ltd.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. The loss of ICF membership does not obstruct the initiation of the compensation procedure for covered clients either.

The withdrawal of the ICF membership was carried out after CySEC’s decision to withdraw the Cyprus Investment Firm (CIF) authorisation of Alfa Capital Holdings (Cyprus) Ltd and UGL Exchange Ltd.

Let’s recall that, in July 2020, CySEC said it was fully withdrawing the CIF license of retail FX broker UGL Exchange Ltd. UGL, formerly known as Baynet Ultrasimple Global (Cy) Ltd, was a Chinese owned retail FX broker operation in Cyprus established in 2017 which never really got off the ground. CySEC had temporarily suspended UGL’s license back in April, and in July made the suspension permanent.

CySEC noted a number of problems at UGL including protection of clients’ money, and the company’s own funds and capital ratio.

And, at its meeting held on October 5, 2020, CySEC decided to withdraw the Cyprus Investment Firm (CIF) authorisation with Number 025/04 of Alfa Capital Holdings (Cyprus) Ltd.

The license was withdrawn pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05. The regulator explained that its decision was due to the company’s decision to expressly renounce the authorization.