The Cypriot financial regulatory body, the Cyprus Securities and Exchange Commission (CySEC), said on Friday it has granted a Cypriot investment firm (CIF) license to forex broker Rynat Trading, while Metropol, a multi-asset broker, has renounced its CIF license.
The license of Rynat Trading, which was issued on 30 June, 2016. It has not been activated yet and the company cannot provide financial and ancillary services until it gets an active status. Under the local regulatory framework, the CySEC grants a non-active CIF license that is later activated, but not before the licensee meets certain conditions.
On the other hand, Metropol, operating via www.metropol-cyprus.com, can no longer operate as a financial company since from 1 June, 2016, it renounced its license. It has three months from that date to settle its obligations arising from the license relapse, during which it remains under the CySEC’s supervision.
Financial service providers, forex brokers included, are not allowed to do business in Cyprus unless they hold a license by the CySEC or the relevant authorities in any other EU member state. A CySEC license, on its part, provides access to the rest of the EU markets.
The CySEC provides two types of CIF licenses – limited, under which the financial company can execute orders on behalf of clients, but not on its own account, and full license, which allows an entity to act on both its own behalf and that of clients.
In the past months, many brokers have obtained CIF licenses, but many other have parted with theirs, both at their own discretion and forced by the regulator. The CySEC has been very stringent to brokers, continuously suspending their licenses for noncompliance with its requirements. Some of these suspensions have turned into license withdrawals or renouncements.