Three Cyprus-based FX brokers decided to cease providing any investment services in the UK, according to the FCA. These outgoing brokers are Maxiflex Ltd (EuropeFX), Maxigrid Limited (Dualix & AGM Markets), and Reliantco Investments Ltd (UFX).
They have based the decision on notifications from their original regulator, CySEC.
The FCA said existing UK account holders with open positions and/or cash balances should review their notifications. These are provided on the respective firms’ websites and/or firm communications with UK clients through email. They are also available at account log-in.
The firms should clearly set out the process and timelines for their ongoing interactions with UK-based customers, the FCA added.
We do not yet know whether these brands voluntarily turned their backs to the UK market. Or they were actually ordered by the CySEC to give up their passporting rights.
However, EuropeFX’s CEO, Keith Ioakim, confirmed that it was his company’s decision to stop soliciting new UK clients. This was as of June 4, where he cited the uncertainty of the markets and ongoing developments. Furthermore, he said that EuropeFX proceeded with the necessary notifications with the relevant regulatory authorities.
This decision was not taken easily or light-heartedly, as their existing UK clients are very important to them. They value and acknowledge their loyalty to them and their brand. He added that the UK market is a very lucrative and well-respected market.
However, and in any case, this does not mean that they will abandon their existing UK clients. They’ll continue to offer them the quality of service that they expect as they strive to deliver for so long. They’ll also always be in compliance with their regulatory and compliance requirements, Ioakim concluded.
FCA Removes Approvals of 4 Brokers
Earlier in June, the FCA suspended the passporting rights of four Cypriot firms. At the time, the British watchdog barred the UK counterparts of Hoch Capital Ltd (iTrader and tradeATF) and Magnum FX (Cyprus) (ET Finance)Ltd. It also barred Rodeler Ltd (24option) and F1Markets Ltd (Investous, StrattonMarkets, and Europrime).