Cyprus financial regulator CySEC has announced that at its meeting held on the 9 March 2026, it decided, in accordance with the provisions of article 11(3) of the Investment Services and Activities and Regulated Markets Law, that the influence exercised by David Masika, as sole shareholder of CIF license holder Lydya Financial Ltd, is prejudicial to the sound and prudent management of the CIF.

Lydya Financial Ltd has held a CySEC CIF license since 2016. The company operates the CFD brokerage website lydyafinancial.com.

CySEC action

CySEC said it decided to take the following measures, with immediate effect, in order to end that situation:

1. To suspend the exercise of the voting rights attached to the shares of the CIF, held by David Masika (as ultimate beneficial owner, or UBO), and constitute the entirety of the CIF’s share capital and

2. To prohibit to David Masika (UBO) to exercise management duties on the Board of Directors of the CIF.

CySEC considerations

For the determination of the type of measures, CySEC said it took into account:

i. The severity attributed by the legislator, as provided in article 11(3) of the Law, to the influence of shareholders and to the possibility that it may be prejudicial to the sound and prudent management of a CIF, which is reflected in the type of measures provided for in the same article.

ii. That the particular measures are considered, under the circumstances, appropriate to end David Masika’s influence on the management of the CIF, namely:

– The suspension of voting rights to the sole shareholder of the CIF, David Masika, ensures his non-participation in decision-making at a general meeting of CIF’s shareholders, which is the body for handling all of CIF’s matters.

– The prohibition of exercising management duties to David Masika on the Board of Directors of the CIF, ensures his non-intervention in the management and operation of the CIF.