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CySEC Suspends License of Infina Investments over Capital Flaws

The Cyprus Securities and Exchange Commission (CySEC) has acted rough again: this time the Cypriot watchdog has temporarily withdrawn the authorization of Infina Investments (Cyprus) Limited. The company, which offers its services via the website is accused of numerous breaches of the Investment Services and Activities and Regulated Markets Law, with the focus on violations of the section about capital adequacy. 

In particular, the regulator has found that the company is in breach of:
- section 67 (1), which states that: “A CIF (Cyprus Investment Firm) must have own funds, which are at all times more than or equal to the sum of its capital requirements. “
- section 69 (1,2), meaning that individuals within the company or the company had exposures that exceed those determined by the Law.
- section 71 – meaning that the violations were both on individual and consolidated basis.
- sections 12, 15, 16, 18 – meaning that the company violated the requirements for a CIF license regarding organization of the business, main office and directors.
The suspension, which has been in force since February 21, 2014, will last for a month and demands that Infina stops providing its services in Cyprus while the suspension is in place. The watchdog may take more severe measures after the expiration of the month. Most often, if no remedy is offered for the problems, the regulator prolongs the suspension, as was the case with Cedar Finance
To many the decision of the watchdog must have come as a surprise given that Infina Investments has had its CIF authorization since May 27, 2009. Apparently, CySEC is tightening its grip. You may recall that about a month ago the regulator introduced a fresh set of reporting requirements for CIFs, as the work progresses on a risk based supervision framework (RBS-F). The first reports under the new requirements were due on February 3, 2014.
And although CySEC is strict, it does not suspend or take away licenses often. It has the right to do so, however, under section 28 (2) of the Law, that is when “there are suspicions for an alleged violation of this Law or/and the directives issued pursuant to this Law or/and the Regulation (EC) No 1287/2006 or/and any other legislation regulating the capital market, that possibly endangers the CIF's client interests or the investor interests or generally the regular operation of the capital market.”
For the official announcement by CySEC on Infina's license, click here.
TAGS: cysec  cysec license  cyprus forex  infina investments  authorization  authorization suspension  forex licence  forex market  cyprus investment firm  capital requirements  cif 
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