Owner of the Libertex broker with a suspended CySEC license

Cypriot financial regulator, CySEC, released an announcement about the suspension of the CIF license of Indication Investments Ltd., which operates a retail broker brand known as Libertex (libertex.com).

Libertex problems

Libertex / Indication Investments was last year fined EUR 160 by Cypriot supervision for violations that included failure to execute certain client orders based on their best interest, as required by licensing conditions, and offering leverage of more than 1:30 to retail status. The current alleged infringements are of a more serious nature.

Technically, CySEC stated that Indication Investments CIF License No. 164/12 is "Partially suspended"because the regulator said it suspected alleged violations from:

1. Article 42 of Regulation (EU) no. 600/2014 - the Company appears not to comply with paragraphs 4 (1) (d) and 4 (e) of DI87-09 regarding the restriction of the marketing, distribution and sale of CFDs to retail clients.
2. Art. 22 sec. 1 of the Act - it seems that the Company does not always meet the condition of the authorization referred to in Art. 17 sec. 2 of the Act, in terms of organizational requirements.
3. Art. 25 sec. 1 of the Act - the company does not appear to be acting honestly, fairly and professionally when providing investment services to clients in accordance with the best interests of clients.
4. Art. 25 sec. 3 lit. a of the Act - it appears that the Company does not provide its clients or potential clients with information, including marketing messages, that are reliable, clear and not misleading.

The regulator added that the above decision was made because the above-mentioned alleged violations are of concern and risk in relation to the protection of the Company's customers and / or pose a threat to the proper functioning and integrity of the market.

Regarding "Partial suspension" authorization of the Company, CySEC provided that it includes:

• It is forbidden to accept new clients and conclude any business transactions with them.
• No advertising as an investment service provider. To ensure this, the Company is prohibited from marketing / advertising its services to existing or potential customers, as well as communicating with them for this purpose, directly or through third parties with whom the Company cooperates in the field of customer service.
• For the duration of the suspension of the authorization, the Company is obliged to publish on all its websites a message regarding the partial suspension of its authorization and the inability to provide / perform investment services / activities for new clients.
• The company may not allow its existing clients to make new deposits, unless they specifically request it, and at the same time such deposits are made solely to cover the margin requirements of existing open client positions.

CySEC announced that Indication Investments must until September 17, 2021 take the necessary steps to comply with the above-mentioned regulations.

As long as the authorization suspension is in effect, the Company, provided it is consistent with the wishes of its existing customers, may continue the following actions, and such actions will not be considered a breach of section 9 (7) (a). ) with DI87-05:

• It carries out all its own trades as well as the trades of its clients that are ahead of it according to the client's instructions.
• Return all funds and financial instruments that you can assign to your clients.

The official CySEC message

Libertex is the official partner of the EPL Tottenham Hotspur football team. The company boasts nearly 3 million customers, a presence in 120 countries, 700 employees and 23 years of presence on the market (data from the broker).