Cyprus financial regulator CySEC has announced that it is 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 now 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.

The full CySEC notice on UGL follows:

20 July 2020

CYSEC Decision

Announcement date: 20.07.2020; CySEC Decision date: 09.06.2020

Regarding: UGL Exchange 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 2 April 2020, announces that, at its meeting of 9 June 2020, decided to withdraw the Cyprus Investment Firm authorisation of UGL Exchange Ltd (‘the Company’), with Number 349/17, 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 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 of Directive DI87-01 regarding the protection of clients’ money, and as a consequence it does not fulfill the terms of its operational license.

In addition, CySEC has decided that the Company is not complying with articles 92(1) and 93(1) of Regulation (EU) 575/2013 on prudential requirements, in relation to own funds and total capital ratio.

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

(i) Ensure it does not provide investment and ancillary services, other than those that are strictly necessary for the completion of its pending transactions and those of its clients, as per their instructions.

(ii) Publish on its websites an announcement informing about the withdrawal of its license, 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 the submission of any complaints.

(iii) Return all funds and financial instruments that belong/amount to its clients, including any profits.

(iv) Examine and resolve all clients’ complaints that have been submitted to them.

(v) Ensure that it continues to maintain an office and employs all the necessary staff, in order to carry out the tasks mentioned above.