CySEC Launched Investigations Against Ayers Alliance As It Struggles To Return Investor Funds
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The Cyprus Securities and Exchange Commission (CySEC) has launched a probe into the Ayers Alliance amid links to the potential violations of the existing regulatory framework. The CySEC initially took action against the Ayers Alliance in April 2022, but the platform’s woes have deepened.
CySEC starts investigations against Ayers Alliance
The CySEC released a statement saying that it was investigating the Ayers Alliance. After the investigation, the commission hinted that the company might be slapped with financial penalties.
The Ayers Alliance has issued a separate statement saying that paying out funds to all the customers might result in challenges. The company recently said that it had ceased offering investment services and voluntarily wished to give up its Cypriot Investment Firm (CIF) license. The company is licensed to provide asset management, structured products, and units across collective investments.
The CySEC is conducting a probe concerning the firm’s plan to renounce its CIF license. As the Ayers Alliance awaits the results of the investigation, it will still be subject to the requirements of the CIF license while complying with the applicable laws.
The statement from the CySEC said, “CySEC notes that Ayers Alliance Financial Group Ltd has appointed Mr. Panos Eliades as Administrator to the Group. Administrators are generally appointed by the Board of Directors of a company to investigate its business and financial affairs.”
The CySEC has been locked in a tussle with Ayers Alliance for quite a while over the company violating the regulatory framework regarding protecting client assets. The regulator ordered that the company halt its partnership with another firm in charge of maintaining client deposits.
Concerns as Ayers Alliance struggle to reimburse investors
The probe launched by the CySEC also comes when financial woes appear to be gripping the embattled company. Ayers recently said that the company wished to return all funds to clients but alluded that it would not happen as it was “facing difficulties.”
The company also said it would no longer conduct investment activities beyond those mandatory in completing pending client transactions. It added that customer assets and funds would be reimbursed to the best of the company’s abilities.
The company said that amid the company’s woes, it was taking legal action against the third parties responsible for the current financial predicament, adding that the CySEC was already aware of the legal action.
The CySEC initially took regulatory action against the Ayers Alliance on April 2022. The commission had said that the company failed to comply with the mandatory staffing requirements for the risk management department.
The regulator also barred the company from using staff that does not possess the appropriate expertise, knowledge, and skills needed to run the Head of the Risk Management Department at the company.
