Cyprus financial regulator CySEC has announced that it has suspended the CIF license of Maxiflex Ltd. Maxiflex operates the EuropeFX.com retail FX brokerage brand, as well as europecapitalgroup.com and europestocks.com.

The regulator said that there are suspicions of alleged violations of rules at Maxiflex including those relating to conducting business and/or to facilitating the conducting of business not stated in its authorisation, and the company does not appear to comply at all times with the authorisation conditions relating to suitability of members of the management body, suitability of shareholder, and organisational requirements.

The suspension comes after Maxiflex settled with CySEC late last year and paid a fine of €370,000 for what were called “possible violations” by Maxiflex regarding organisational requirements with which a CIF (i.e. a licensed CySEC entity) is required to comply, conflicts of interest, information to clients, the assessment of suitability and appropriateness and reporting to clients, and the obligation to execute orders on terms most favourable to the client.

CySEC noted that within one month, Maxiflex must take the necessary actions to comply with the aforementioned provisions. For as long as the suspension of its license is in force, Maxiflex / EuropeFX is not permitted to provide/carry out investment services/activities, to enter into any business transaction with any person and accept any new client, or to advertise itself as a provider of investment services.

The company, provided this is consistent with the wishes of its existing clients, may complete all its own transactions and those of its clients which are before it, in accordance with client instructions, and may return all funds and financial instruments which are attributable to its clients.