FXVC operator Finteractive Ltd fined €100K, renounces CySEC license
Cyprus financial regulator CySEC has announced that it reached a settlement with Finteractive Ltd on a fine of €100,000. Finteractive operates the FXVC retail FX broker brand, at website fxvc.eu.
CySEC said that the settlement is for possible violation by Finteractive of the Investment Services and Activities and Regulated Markets Law of 2017. More specifically, the investigation for which the settlement was reached, covers the period 1.8.2019 to 28.2.2021 and involved assessing the Company’s compliance with article 22(1) of the Law as to the authorisation condition laid down in article 17(2) of the Law, regarding the organisational requirements with which a CIF is required to comply.
FXVC was one of a handful of CySEC-licensed brokers which, in 2021, was banned from offering CFDs in the UK. The UK’s FCA stated at the time that FXVC used a variety of inappropriate techniques, including misleading financial promotions which appeared to offer consumers the opportunity to purchase shares in a well-known company and failed to mention that they were actually promoting CFDs.
Separately, FXVC has announced on its EU website (see full text below) that it has voluntarily renounced its CySEC license, although the Cypriot regulator still shows them as “Under examination for voluntary renunciation of the authorisation.” The FXVC brand is continuing to operate offshore at website fxvc.com, as a Seychelles entity.
FXVC’s full note on its fxvc.eu website (which now redirects to news.fxvc.com) reads as follows:
RENOUNCEMENT OF AUTHORISATION
We would like to inform you that FXVC had decided under its own initiative to renounce its CIF license with authorization number 238/14 as of 20 January 2022 and following communication with its existing clients, the Company as of 28 February 2022 ceased the offering of investment services.
Clients who have eligible funds in their account, were notified in order to be refunded the amount of their eligible funds or requested to provide information necessary to proceed with the refund (in accordance with the Company’s Terms and Conditions.)
We would like to thank you and it was truly a pleasure working with you. Please do not hesitate to contact us if you have any questions or concerns or if there is anything at all that we can do to help you through this transition.
For further information/clarifications contact us on firstname.lastname@example.org
For the filing of any possible complaint please contact us on email@example.com