FXVC Renounces CIF License, Pays a €100,000 Fine to Settle with CySEC

The Cyprus Securities and Exchange Commission (CySEC) announced that it has reached a settlement with FXVC, operated by CFD broker Finteractive Ltd, on a fine of €100,000. The company has voluntarily withdrew its Cyprus Investment Firm (CIF) license.

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CySEC stated in a released document that Finteractive Ltd may have violated the Investment Services and Activities and Regulated Markets Law of 2017. "More specifically, the investigation for which the settlement was reached, covers the period 1.8.2019 to 28.2.2021 and involved assessing the Company's compliance with article 22(1) of the Law as to the authorization condition laid down in article 17(2) of the Law, regarding the organizational requirements with which a CIF is required to comply", the agency further explained.

CySEC stated:"Under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, CySEC has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC's supervised legislation."

FXVC, the trading platform of Finteractive Ltd, has published an "Important Notice" on its official website:"FXVC had decided under its own initiative to renounce its CIF license with authorization number 238/14 as of 20 January 2022 and following communication with its existing clients, the Company as of 28 February 2022 ceased the offering of investment services. 

Clients who have eligible funds in their account, were notified in order to be refunded the amount of their eligible funds or requested to provide information necessary to proceed with the refund (in accordance with the Company's Terms and Conditions.)."

It was not the first time for Finteractive Ltd to be punished by regulators. In April 2021, the Financial Conduct Authority (FCA) had stopped from FXVC conducting any regulated activities in the UK​ for its inappropriate techniques, including misleading financial promotions. Many of the FXVC's customers were unclear about the nature of the investments that they were being persuaded to make and the risks involved in trading in CFDs.