The CySEC withdrew the Investors Compensation Fund membership of four companies (ICF). The four companies are; Sharelink Securities & Financial Services, MPS Marketplace Securities, Woodbrook Group, and Finteractive.
The Cypriot regulator recently removed the ICF membership of multiple companies, some of which have also lost their CIF licenses. These businesses include iTrader, Daweda Exchange, and London Capital Group (Cyprus).
The regulator went on to say that even though a firm may lose its ICF membership status, this does not stop clients who were invested with the firm before it lost its position from receiving compensation under the Directive if they satisfy the conditions for eligibility.
Brokers Exiting Europe
Finteractive is a broker that offers FX and CFD trading services on FXVC. The company previously applied for a Cyprus license to serve customers in the European Union. However, it is still licensed in Seychelles.
MPS (previously SpotOption) offers various services, such as receiving and transmitting orders regarding one or more financial instruments, executing orders on the client’s behalf, providing custody of assets, and foreign exchange services.
The ICF deposit guarantees the return of customer funds up to €20,000 if their financial service provider becomes bankrupt or otherwise unable to return the money.
Recently, CySEC started compensating clients of Maxigrid who lost their licenses last February. Clients must submit their claims online or offline before April 2023.