The Cyprus Securities and Exchange Commission (CySEC) confirmed on Wednesday that it has wholly withdrawn the Cyprus Investment Firm (CIF) License of Bogofinance Capital Markets, which was rebranded as FXJET three years ago.
According to the CySEC regulatory manifest, Bogofinance has had its CIF authorisation withdrawn on its own request and the surrender of its license was entirely voluntary, not the result of any regulatory action taken by the watchdog.
Although the regulator did not state why Bogofinance has decided to say goodbye to its Cypriot identity, it has recently seen many regulated brokers opt to voluntary surrender their license.
The exact reasons leading up to this decision remain unclear, but CySEC will certainly maintain supervision over the financial service company until it has taken care of its responsibilities under the license.
A visit to the broker’s website reveals that FXJET has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC. The company has also published the following statement to notify clients about the new changes.
“We would like to inform you that the Company is in the process of voluntarily renouncing its CIF Licence with authorisation number 321/17. Therefore, the Company will no longer accept any new clients and/or the opening of any new accounts. We would like to inform you we give you 15 (fifteen) days’ notice (hereinafter the ‘Notice Period’) of the termination of the Agreement and our relationship thereunder, such termination to take place on the 30th of June 2020.”
However, this has yet to be updated to reflect the final withdrawal of its CIF license.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, Bogofinance 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, according to the same CySEC announcement.
The regulator often gives the broker three months from that date to settle its obligations arising from the investment services that also lapsed, during which time it remains under the Cypriot watchdog’s supervision.