AFX Capital Markets Receive 10-Day Suspension
AFX Capital Markets has received a ten-day suspension from the Cyprus Securities and Exchange Commission. This suspension also applies to the subsidiary brand called STO, which is owned by AFX and uses the same licensing. CySEC will now have begun a formal investigation for ten days, determining if AFX & STO broke regulations on the safety of client funds. AFX was fined by CySEC a year ago after they broke another law regarding misleading information. A third suspension will result in termination of their license with the Cyprus regulator.
CySEC official statement to the public reads: “There are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorization condition in section 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01.”
CySEC’s decision to suspend AFXs license for ten days allows for the regulator to confirm that which guidelines have been broken and which haven’t. Any truthful findings of non-compliance will result in a significant fine for AFX Capital Markets.
The Consequences of Suspension
The legal team for AFX Capital Markets has been working with the Cyprus Securities and Exchange Commission to resolve the non-compliance error. During the next ten days, AFX will need to comply with any information requests and obey any new provisions that CySEC implements. AFX can’t provide any financial services during this period.
The brokerage won’t be able to accept new investors or traders; they’ll also not be able to permit any business transactions. AFX also can’t advertise their business in any way before the suspension is complete. Prior transactions for withdrawing made by clients before the suspension announcement can be completed. Additionally, if any clients decide to close accounts and request all funds be returned, AFX will have to comply.
Tom Arran
