The Cyprus Securities and Exchange Commission (CySEC) has announced that the authorisation of Cyprus Investment Firm Exelcius Prime Ltd, number 366/18, is suspended in whole, pursuant to section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the DI87-05’).

CySEC said that Exelcius Prime, which operates the Retail FX and CFD brokerage brand 1Market (at website 1market.eu), is under suspicion of an alleged violation of section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017, as the company does not appear to comply at all times with the authorisation conditions in:

1. Sections 9(3), 9(8), 9(16) of the Law regarding its board of directors and the persons who must effectively direct the business of the company, and

2. Sections 17(2) of the Law, as further specified in Article 22(2) of Delegated Regulation (EU) 2017/565 regarding its compliance function.

The above decision was reached as the aforementioned alleged violations cause concerns and risk relating to the protection of the company’s clients or the investors and constitute a threat to the orderly operation and integrity of the market.

Within 21 days, the company must take the necessary actions to comply with the aforementioned provisions.

For as long as the suspension of the authorisation is in force:

1. 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.

2. 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.

Moreover the company may accept new deposits from existing clients only when such deposits are made for covering the margin requirements of the client (margin call), following their explicit request.