CySEC extends suspension of CIF authorization of FXGM parent

The Cyprus Securities and Exchange Commission (CySEC) today announces that the suspension of the authorisation of the Cyprus Investment Firm Depaho Ltd, parent of FXGM, is extended and the company is allowed a two-month period to proceed with the necessary actions in order to comply with the relevant provisions of The Investment Services and Activities and Regulated Markets Law of 2017 and of Regulation (EU) no. 600/2014.

While the suspension of the authorisation is in force, the Company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new client.
  • Advertise itself as a provider of investment services.

Depaho may proceed with certain actions, such as:

  • Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
  • Return all funds and financial instruments which are attributable to its clients.

Let’s recall that, earlier in July, CySEC announced that the authorisation of Depaho Ltd is suspended in whole. The regulator explained that there are suspicions of Depaho’s alleged violations of The Investment Services and Activities and Regulated Markets Law of 2017.

Back then, CySEC said that Depaho does not appear to have provided adequate information regarding the corrective measures taken and/or has not taken adequate corrective measures for the purposes of the settlement reached with CySEC, as well as the results of the investigation performed by the supervisory authority of Spain Comision Nacional del Mercado de Valores (‘CNMV’) at the company’s branch in Spain, regarding the company’s operation in that market, as the aforementioned alleged violations cause concern and risk relating to the protection of the Company’s clients and/or constitute a threat to the orderly operation and integrity of the market.

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