The Cyprus Securities and Exchange Commission (CySEC) said on Friday its board has decided to continue the suspension of the license of Falcon Brokers to operate as an investment company. The broker is not authorized to perform investment services in the country and to target Cypriot citizens.
The decision was adopted by the Commission’s regular board meeting that took place on 30 November.
As a result of CySEC’s decision, Falcon Brokers should continue to follow some requirements. The broker:
- Cannot provide/perform any investment services/activities, pursuant to section 26(5) of the Law.
- Must, if existing clients so wish, without being considered in violation of section 26(5) of the Law:
- Close all open positions in relation to clients’ contracts, or of its own, on their maturity date or on an earlier date if the client so wishes.
- Return to existing clients all of their funds and profits earned.
Falcon Brokers’ license was suspended on 21 September this year after the CySEC suspected the broker has violated the Investment Services and Activities and Regulated Markets Law. The commission has not provided any details as to what violations the broker has made. It said at the time that Falcon Brokers has to take actions within a one-month period in order to comply with the commission’s conditions.
Falcon Brokers received its license in December 2010. The broker says it is also registered in the UK, Germany, and France. It offers forex and contracts for difference (CFD) trading services in 30 European countries and 94 countries around the world.
Our research showed that Falcon Brokers has issued a warning for investors on its website that its license has been suspended until 30 November.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.
Source: CySEC
