The Cyprus Securities and Exchange Commission (CySEC) confirmed on Wednesday that Alfa Capital Holdings (Cyprus) Ltd has renounced its Cyprus Investment Firm (CIF) License, as of October 5, 2020.
Alfa Capital provides spot foreign exchange (forex) to retail brokers, HFTs, asset managers and other institutional investors, among other instruments. It had been operating the retail FX brand Alfa-Forex, but in 2018 announced that it would be focusing more on its institutional operations, after no longer offering its services to individual clients and other users which are categorized as “retail” under MiFID, from the end of June 2019.
Alfa Capital made the strategic decision to focus on providing “premium trading services” on forex and related products to institutional market participants through its existing trading platforms.
The Cypriot watchdog made it clear that Alfa Capital’s surrender of the license is entirely voluntary based on the company’s decision and does not arise as a result of any regulatory action taken by the CySEC.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, Alfa Capital must provide a confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients.