Cyprus CYSEC’s financial regulator has announced that the authorization of the Cyprus Ltd investment company, with the number 336/17, is suspended. The Regulatory Authority stated that the action was needed to suspend Conotoxia’s license, as there are suspicions of a supposed breach of Article 22 (1) of investment services and the 2017 market activities and the company, as the Company does not appear to comply at any time with the conditions of authorization in:
1. Sections 9 (2) and 9 (16) of the law regarding the Board of Directors and the People who have to effectively direct the company’s business;
2. Section 11 (1) (b) of the law regarding the suitability of shareholders;
3. Section 17 (2) of the Law, as defined in Articles 21 (1) (a) and 22 (1) and 22 (2) (a) of the upgraded Regulation (EU) 2017/565 (the Regulation) and Senctions 17 (5) (b) of the Law, in accordance with Articles 23 (1) (A) and 24 (a) of the regulatory organization.
CYSEC’s move comes shortly late against Conotoxia’s subsidiary by Poland, as Conotoxia.com and Cinkciarz.Pl websites have already collapsed, following an action taken earlier this year by Poland’s regulator against the team.
CYSEC said the above decision was achieved as the aforementioned alleged violation is causing concerns and risk of protecting the company or investors’ customers and are a threat to the normal functioning and integrity of the market.
Within a month, the company must take the necessary steps to comply with the aforementioned provisions. For as long as the suspension of the authorization is in place, as provided in section 9 of DI87-05, the Company is not allowed to:
- Provide/carry out investment services/activities.
- Enter any business transaction with any person and accept any new customer.
- Is advertised as an investment service provider.
The company, provided that this is in accordance with the wishes of its existing customers, may proceed with the following actions, without such actions being considered as a breach of section 7 (a) of DI87-05:
- Complete all its own transactions and those of its customers that are before it, according to the customer’s instructions.
- Return all the funds and financial instruments due to its customers.