CySEC Delists Alfa Capital and UGL from Compensation Fund

The Cyprus Securities and Exchange Commission(CySEC) yesterday announced that it has withdrawn the Investors Compensation Fund(ICF) membership of two companies, namely Alfa Capital Holdings (Cyprus) Ltd and UGL Exchange Ltd.

It is noted that, in accordance with paragraph 6(3) of the Directive, the loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor doesit obstruct the initiation of the compensation procedure for covered clients. That is to say, losing membership of the fund does not mean a loss covered clients' rights to compensation for investing that took place until the loss of membership. Any outstanding debts owed by members to the fund, continue to exist until they are paid, irrespective of their deletion.

Let's recall that Alfa Capital decided to give up its CySEC CIF license with Number 025/04 this year, and the decision was finalized by the regulator on October 5, 2020.

In addition, the watchdog withdrawn the CIF license of Retail FX broker UGL Exchange Ltd. UGL, formerly known as Baynet Ultrasimple Global (Cy) Ltd in July. Prior to this, CySEC had temporarily suspended UGL’s license back in April.