CySEC revokes the ICF membership of Trilt and RMG Holdings

The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Investor Compensation Fund (ICF) membership for Trilt and RMG Holding Limited. The regulator said that the decision to withdraw the ICF membership for the two companies came after their Cyprus Investments Firms (CIF) licenses was withdrawn.

CySEC revokes the ICF membership for Trilt and RMG Holdings

Trilt is a brokerage company that provides access to financial products such as forex and contracts for difference (CFDs). The Cypriot regulator noted that the two companies would no longer be covered under the ICF membership. The two companies also had their CIF licenses reversed.

The regulator has also addressed the loss of the ICF membership by the two companies and how it would affect their operations. According to the regulator, this membership did not mean that the clients that are covered under this fund would receive compensation for the investment deals secured before their ICF membership was ended.

The withdrawal of this membership will also not affect the process of starting compensation procedures for the covered clients. The CySEC has said that the coverage for these clients depends upon the conditions that the regulator has set regarding the operations of the membership and how it affects the firms that have been covered.

Reversal of CIF licenses

As aforementioned, the decision to terminate the ICF membership was prompted by reversing the CIF licenses for the two companies. The Cypriot regulator announced last month that it was withdrawing the operating license issued to Trilt.

The reversal of Trilt’s license has brought the total number of CIF license withdrawals since January to around five. According to the regulator, the decision to reverse the license withdrawals was made on March 20. The license for the FX and CFDs broker was reversed after the company made a voluntary decision to renounce the license.

Trilt secured the CIF license from the CySEC in October 2014. The license allowed the broker to offer services to clients based in Cyprus as an electronic communication network and an automatic processing broker. The firm also allowed its clients to access forex and CFD products on MetaTrader. It also provided its clients access to trading platforms based on both mobile and web-based devices.

In April last year, CySEC revealed that it had withdrawn the CIF license awarded to RMG Holdings. The license was canceled alongside the licenses of ED&F MAN Capital Markets CEEMA Limited. Like Trilt, RMG Holding also gave up its CIF license voluntarily.

RMG Holding is a company that has been providing brokerage services to its clients since 1995. The company issued a statement on its website that it had decided to discontinue its services after evaluating its business.

RMG Holding obtained the CIF license in 2004, and the company was significantly active in Russia, the US, and London Stock Exchange-traded stocks and depositary receipts. The withdrawal means the company will no longer offer its services in Cyprus.