CySEC Withdraws The License Of Leverate Financial Services
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The Cyprus Securities and Exchange Commission (CySEC) has withdrawn CIF license from Leverate Financial Services. According to CySEC, the company’s voluntary renunciation of the license prompted the watchdog to take action in line with the Regulated Markets Law.
Following Leverate’s withdrawal, the company has now been officially banned from carrying out any business within the entities regulated and overseen by CySEC.
However, no judicial review of the renouncement was cited. This means that the decision by the firm is now final, barring any legal developments in the future.
CySEC License Is A Favorable Option For Many Brokerage Firms
Leverate started its business in 2008 as a technology and service provider. Since its inception, the company has grown and expanded across different jurisdictions. The firm started operations with only four people. But now it has more than 150 workers. Leverate is an important player within the brokerage space, as it provides dedicated account managers to its users.
Several brokerage firms always seek a Cyprus license as they believe it’s more favorable to them than having a license from other jurisdictions. The process of acquiring the license is also less rigorous compared to others. Several multi-asset brokers have CySEC licenses because it also gives them access to the entire markets in Europe.
CYSEC has been revoking licenses lately. The regulator recently withdrew the license of four Cyprus-based investment companies: Kap Strategy Ltd, FXBFI Broker Financial Investment Firm, Holiway Investments Ltd, and Stone Edge Capital Ltd. These companies also lost their Investors Compensation Fund (ICF) license.
Although their licenses have been revoked, clients covered in the investment protection are still eligible to claim compensation for investment operations carried out before the companies withdrew their licenses. However, they must pass the regulator’s eligibility criteria.
CySEC Continues To Offer Protection To Investors
According to CySEC, Holiway Investments and Stone Edge Capital violated the CIF authorization. While the former was guilty of non-compliance, the latter also had complaint issues. They were accused of not complying with organizational standards. They were also found wanting when it comes to anti-money laundering (AML) systems.
KAB Strategy renounced its license voluntarily while CySEC fined FXBFI Broker €50,000 for having inadequate CFT/AML policies.
CySEC has continued to draw the lines against companies within its jurisdictions that violated the Investor Protection Act. The regulator has been very active in its role of protecting individuals and investors against failures and oversights from brokerage and investment firms.
