Fidelisco Capital Markets Ltd renounced its Cyprus Investment Firm regulator license as per the Cyprus Securities and Exchange Commission.
CySEC said the Fidelisco’s renunciation was voluntary and did not result from any official actions from the regulator.
Both parties haven’t disclosed the reasoning behind the withdrawal.
Still, the Cypriot promised to supervise the financial service company until it finishes its corresponding responsibilities.
Tensions started in 2015 when Fidelisco wrongly told CySEC it plans to establish a representative office in Paralimni.
The branch opened on November 14 and required clients to disclose legal information as regards the establishment.
CySEC hit Fidelisco with a €15,000 fine for violating the Investment Services and Activities and Regulated Markets Law.
The regulator said this fine was relatively light because the Paralimni branch terminated its operations and hasn’t committed similar violations.
The UK FCA and the Netherlands’ AFM still regulates Fidelisco Capital Markets.
CySEC’s Unlisted Brokers
Other brokers under the CIF authorization voluntarily surrendered their licenses recently, including UBFS and Alfa-Forex.
The list includes now-defunct foreign exchange brokers like UBFS Invest backed by Moneychoice Brokers Ltd.
CySEC unlisted financial services providers from its lifeboat scheme earlier this year.
The regulator also delisted Spot Capital Markets Ltd, which was fined €50,000 in 2018.
Alfa-Forex also shut down its services in Europe, driving the company away from the CySEC investment list.
However, the delisting doesn’t mean the clients lost their compensation for investing before losing their memberships.
The companies participated in compensation procedures after the revocation and wouldn’t be expected to pay back obligations after their withdrawal.
Each client’s payable compensations based on their contractual governing relationships with the regulator. The maximum amount didn’t exceed €20,000.
The Investor Compensation Fund launched in 2015 as a legislative framework governing the CIF. It proposed the “universal change” with an amendment to financial companies’ annual contribution to CySEC.
