The Cyprus Securities and Exchange Commission (CySEC) issued on Thursday two separate notices, warning about the license suspension of Atlas Capital Financial Services (ACFX) and the continuation of the suspension of the license of Pegase Capital. Both companies are licensed as Cypriot Investment Firm (CIF), offering financial and ancillary services.
According to the regulator, both Pegase Capital and ACFX have allegedly violated the CySEC regulations by not complying at all times with the authorization and operating conditions. Under the local laws, they have one month to take action in order to meet certain conditions and comply with the regulatory requirements.
The CySEC initially suspended Pegase Capital’s license on 29 February. The regulator did not explain why it has decided to continue the suspention. Overall, license suspensions are imposed whem a licensed entity may be putting at risk its own operation and its clients’ interests.
During the suspension period, neither of the companies can provide financial services for which the licenses apply, neither can they advertise those services. Moreover, they need to allow clients to close all open positions and to return their investments back, if they request for them.
The decision regarding Pegase Capital was taken on 4 April, while that about Atlas Capital was adopted on 7 April.
In mid-October 2015, the CySEC fined Pegase Capital €300,000, consisting of about a dozen small fines, for not complying with the laws related to the licensing and operation of investment companies and the regulations for prevention of money laundering.
Pegase Capital operates under the binary options brands Interactive Option and HelloBrokers and the forex brand MTXPlus. It does not hold licenses by any other authority, different than the Cypriot regulator.
Earlier on Thursday, the British Columbia Securities Commission (BCSC) issued a warning against Pegase Capital for providing binary options trading without being autorised.
ACFX offers trading in forex, metals, stocks, and future and spot indices and is licensed solely by the CySEC.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.