Cyprus Securities and Exchange Commission (CySEC) withdrew Investor Compensation Fund (ICF) membership for four investment firms.

In a statement issued today (Wednesday), the regulator revoked the ICF membership of IFCM Cyprus Ltd, Arumpro Capital Ltd, Greenpost Trading Europe Ltd, and Reliantco Investments Ltd.

Without providing the reason behind the membership loss, the regulator explained that covered investors could still receive their compensation up to the point that the membership status changed.

What This Means for Investors

According to the watchdog, this means eligible clients can still initiate compensation claims related to previous operations, ensuring some level of security despite the firms losing their ICF membership status.

“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,” the announcement noted. “If the conditions for compensation are fulfilled pursuant to the directive, nor does it obstruct the initiation of the compensation procedure for covered.”

Why the Membership Was Revoked

The decision aligns with CySEC’s ongoing commitment to regulatory oversight. The withdrawal of the CIF authorizations triggered the removal of ICF membership for these firms, a process detailed under the regulator’s guidelines.

CySEC has not disclosed specifics about the violations or issues leading to the withdrawal of the firms’ licenses but emphasized adherence to regulatory standards.

While the ICF provides a safety net for clients of regulated firms, its protections depend on firms maintaining their CIF licenses. The regulator has urged investors to monitor updates from CySEC and verify the regulatory status of firms before engaging in financial activities.

Early last year, CySEC also withdrew the ICF membership of the retail trading firm Brokereo. The suspension of Neo Premium Investments (NPI) Ltd., which offered its retail FX/CFD trading services through the brokereo.com website, was followed by the regulator’s initial decision to revoke the Cypriot Investment Firm license of the firm.

This article was written by Jared Kirui at www.financemagnates.com.Institutional FXRead More

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