CySEC Starts Compensation Procedure under ICF for Maxigrid Clients

The Board of the Cyprus Securities Exchange Commission (CySEC) announced the launch of compensation payment process by the Investor Compensation Fund (ICF) for clients of Maxigrid Ltd.

Maxigrid Ltd, the operator of Forex and CFD trading brands such as Dualix and AGM Markets, has its CySEC license (license number: 145/11) revoked on 14 February 2022.

The regulator stated in the announcement: "As per paragraph 18(1)(a) of Directive DI87-07 of 2019 for the Operation of the Investors Compensation Fund (R.A.D. 76/2019), CySEC has determined that the Company (member of the I.C.F.) for the time being, for reasons directly related to its financial circumstances, is unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so."

According to the announcement, the compensation payment process was started after the withdrawal of Maxigrid's CySEC license. The decision was made on March 28, but was only made public recently.

After the process is initiated, the ICF shall publish an invitation to claim applications in at least two national newspapers, inviting the involved customers to file a claim against Maxigrid, specifying the process, content and deadline for submitting the relevant applications.

Previously, Dualix, the forex brand operated by Maxigrid, reminded in an announcement: "Maxigrid Limited's license is suspended. The Company is adopting a set of improvements [that] are required by its regulator. Please note that the Company, for a period of one month, will not provide/carry out investment services/activities and/or enter into any business transaction with any person nor will it accept any new clients."

Investor Compensation Fund (ICF)

The Investor Compensation Fund for IF Clients (ICF) is the Fund of its members, established pursuant to Article 59(1) and (2) of Law 144(Ι)/2007 which provides for the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and other Related Matters ("the Law") as an investor compensation fund for CIF clients other than credit institutions and its powers and functions are regulated by the provisions of the Law and of the Directive 144-2007-15 of the Cyprus Securities and Exchange Commission for the Continuance of the Operation and the Operation of the IF Investor Compensation Fund ("the Directive").

The maximum amount of compensation paid to applicants, who will be deemed as eligible for compensation, is twenty thousand EUR. The said coverage applies to the total amount of claims by an applicant against an ICF member, irrespective of the number of accounts, the currency and the place of provision of the service.