The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) licence of Eurotrade Investments Rgb, citing breaches of regulatory requirements on management and organizational arrangements.
According to the regulator, the decision was based on breaches of Articles 9(16) and 17(2) of the law. Article 9(16) requires an investment firm to have at least two people effectively directing its business, while Article 17(2) covers the organizational arrangements required for compliant operations.
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“Cysec reached the above decision due to the company’s non-compliance with Articles 9(16) and 17(2) of the law, namely in relation to the requirement to have at least two persons effectively directing its business activities and in relation to its organisational arrangements,” the regulator said.
Licence Withdrawal Ends Investment Services
CySEC said the breaches meant Eurotrade Investments Rgb no longer met the conditions under which its investment firm authorization had been granted.
Following the withdrawal, the company must immediately remove references on its websites and elsewhere to providing investment services, as well as claims relating to CySEC licensing or supervision.
The firm must also review and resolve customer complaints submitted to it. It is prohibited from providing investment or ancillary services following the withdrawal of its authorization.
Governance Requirements Remain Central
The decision highlights the importance of management and organizational requirements within the regulatory framework for investment firms. Maintaining the required governance structure is a condition of authorization, and failure to meet those requirements can result in the withdrawal of a licence.
