The Cyprus Securities and Exchange Commission (CySEC) said it is extending the suspension of the license of the Cyprus investment company Atlas Capital Financial Services, operating the forex brokerage ACFX.
The initial decision for the suspension was taken on April 7, as ACFX was suspected of possible non-compliance with the authorization and operating conditions. The Cyprus regulator has found that the broker has violated the regulations and procedure on risk monitoring and reporting, safeguarding of clients funds and may have endangered the interests of its clients and the regular operation of the capital market.
The company had one month to make adequate arrangements to comply with the authorization requirements.
Meanwhile, the website AtoZForex reports that, according to former ACFX employees, the company has fired or forced to resign the majority of its Cyprus employees. The site’s source says even the majority of the managers have resigned and only a few key employees were left. Another source claims the company was ready to announce its bankruptcy and go through liquidation process, or be acquired by another broker. The site also reports, again quoting people close to the company, that the problems it faces were caused by risk management related issues and loops created by the broker’s low swap trading environment, which some traders abused.
Neither of the claims have been officially confirmed, but at least the latter piece of information is much in line with the announcement ACFX published on its Facebook page on “issues related to abusive trading performed by a number of our clients”.
Source: smnweekly.com/2016/05/12/cysec-extends-the-suspension-of-acfx-license-media-reports-claim-the-broker-is-in-hot-water/
The initial decision for the suspension was taken on April 7, as ACFX was suspected of possible non-compliance with the authorization and operating conditions. The Cyprus regulator has found that the broker has violated the regulations and procedure on risk monitoring and reporting, safeguarding of clients funds and may have endangered the interests of its clients and the regular operation of the capital market.
The company had one month to make adequate arrangements to comply with the authorization requirements.
Meanwhile, the website AtoZForex reports that, according to former ACFX employees, the company has fired or forced to resign the majority of its Cyprus employees. The site’s source says even the majority of the managers have resigned and only a few key employees were left. Another source claims the company was ready to announce its bankruptcy and go through liquidation process, or be acquired by another broker. The site also reports, again quoting people close to the company, that the problems it faces were caused by risk management related issues and loops created by the broker’s low swap trading environment, which some traders abused.
Neither of the claims have been officially confirmed, but at least the latter piece of information is much in line with the announcement ACFX published on its Facebook page on “issues related to abusive trading performed by a number of our clients”.
Source: smnweekly.com/2016/05/12/cysec-extends-the-suspension-of-acfx-license-media-reports-claim-the-broker-is-in-hot-water/
