The Cyprus Securities and Exchange Commission (CySEC) released an update regarding the compensation payments to the clients of the forex broker Falcon Brokers.
As previously reported, recently the regulator announced the launch the compensation procedure and now it releases the required documents and the submission deadlines.
According to CySEC, all clients of the broker who lost its license, must submit their claims, if they have any, by April 30, 2017. As per Cyprus law, they are covered by the Investor Compensation Fund for IF Clients (ICF) and it is the entity that is in charge of the procedure.
One way to file a claim is by filling in a form on CySEC’s website or by sending by post or by hand a letter to the ICF.
The letter must contain the following information:
1.Name, address, ID card number and contact details of the claimant.
2.The name of the ICF member against which the application is submitted and the client code and/or the claimant’s investment account No.
3. Copy of the covered services agreement between the ICF member and the claimant.
4. The type and amount of alleged claims by the claimant.
5. Copy of the latest statement of account from the transactions platform used by the ICF member.
6. Copy of the latest statement of deposits and withdrawals from the account held by the claimant with the ICF member.
7. Copies of documents proving the deposits of monies by the claimant to the ICF member (e.g. money transfer orders, deposit orders, debit notes, etc.)
8. Description of the facts and evidence giving rise to the alleged claims by the claimant and the amount of such claims with specific references to actions or omissions of the ICF member.
9. Any other evidence or supporting documents to demonstrate that the claimant is entitled to apply for compensation.
10. Reference and copies of any correspondence with the ICF member concerned.
11. Written statement that all the evidence/information contained in the application/letter as well as all accompanying documents are correct, complete and accurate.
The ICF reserves the right to request additional information from the claimant.
According to CySEC, the formal claim is an essential requirement for receiving the compensation.
The regulator terminated Falcon’s Brokers license in April this year, after it suspended it last September and extended it twice more – in October and November 2015. The decision was taken based on violations of the Cyprus Investment Services and Activities and Regulated Markets Act, in its part regarding operational requirements and client funds.