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CySEC suspends the license of the next broker
The world cradle of the Forex industry is no longer a paradise for brokers. Every month we receive new information about subsequent licensing suspensions. This testifies to the growing scale of control and the level of their meticulousness. This time it fell on the company Boursotrade Ltd. (operating at http://www.boursotrade.com), whose license has been suspended. For now, for one month. If the required changes are not made during this time, further consequences can be expected.
Reasons for suspension
Logo of a suspended broker
CySEC states that there are suspicions of breach of the provisions of the authorization agreement as the reason for suspending the license. These, however, can significantly threaten the interests of traders. The reasons themselves have not been specifically specified, although the regulator refers to the violation of the provisions of the law on financial enterprises. The articles are to concern the obligations of owners of investment companies, as well as capital collateral requirements in relation to deposits of the broker's clients.
Raw consequences
The result of the license suspension is the inability to accept new customers and establish new business relationships. But it doesn't stop there. The company is also not able to execute or broker trade in financial instruments and provide services both in and outside Cyprus. The ban also covers marketing activities - the suspension of all advertising campaigns regarding the provision of investment services.
Sounds raw? Boursotrade Ltd, as required by CySEC, should immediately post a notice on its home page regarding the suspension of the license by the regulator. "Should" because so far nothing like that is happening.
What can Boursotrade Ltd be waiting for?
In the event that the broker does not implement changes that satisfy CySEC, further reprimands can be expected. It can be a financial penalty, extension of the suspension for another month or even complete withdrawal of the license. The last of the aforementioned activities usually means that the interests of the company are completely buried, although the inability to accept new clients or execute orders for one month is a very strong blow to the broker's finances. It is often a knockout blow (as in the case of ACFX).
