HYCM Europe Relinquishes CIF License, No Longer Serving EU Clients

Fazzaco has learned that HYCM (Europe), the European subsidiary of the multi-regulated Forex and CFD provider HYCM, is voluntarily surrendering its Cyprus Investment Firm (CIF) license.

In a statement on the company's website, HYCM (Europe) announced that it will no longer accept new customers or open new accounts for individuals based in the EU. Additionally, the European business will be terminating its services to all existing customers within the region.

The statement from HYCM (Europe) reads as follows: "We would like to inform you that HYCM (Europe) Limited (the Company) hereby notifies you that it is in the process of voluntarily renouncing its CIF License with authorization number 259/14. Therefore, the Company will no longer accept any new EU-based clients and/or the opening of any new EU-based accounts while it is in the process of terminating all its existing EU-based clients and informing them about the procedure that should be followed for their fund's return."

HYCM (Europe) was granted its CIF license in November 2014. The Cyprus Securities and Exchange Commission (CySEC) website indicates that the European entity is currently "under examination for voluntary renunciation of the authorisation".

(Source: CySEC)

Last month, reports emerged that HYCM's ownership was changing hands and would be acquired by its group's longstanding senior managers, Roger Bach and Stavros Lambouris. Roger Bach has been serving as Director and CEO of HYCM's UK subsidiary since 2005, while Stavros Lambouris has been associated with HYCM since 2007 (excluding a brief stint at a rival broker in 2010-2011) and has been serving as CEO of the group's Cyprus operations since 2014.

It is unclear whether the decision to surrender the CIF license is related to the change in management, and specific details have not been disclosed.