The Cyprus Capital Market Commission (CCM) announces that the operating license of the Cyprus Investment Company WG Wealth Guardian Ltd is suspended in its entirety.
The suspension is carried out in accordance with article 10 paragraph 1 of Directive DI87-05 on the Withdrawal and Suspension of Authorization (“the DI87-05”), as there are suspicions of an alleged violation of article 22 paragraph 1 of The Investment Services and Activities and Regulated Markets Act 2017 (“the Act”).
The company does not appear to be in compliance with the terms of authorization at all times:
- In article 16 of the Law, as further defined in article 9(3) of the Preventive Supervision of Investments Law of 2021, regarding the initial capital requirements and
- In article 17 paragraph 9 of the Law, as further specified in paragraph 4 paragraph 1 point f) – safeguarding of financial instruments and client funds and in paragraph 6 paragraph 1 – deposit of client funds, of Directive DI87-01 on the safeguarding of Client Assets, Liabilities of Product and Risk Governance.
The regulatory decision was made as the alleged violations raise concerns and risks related to the protection of the company’s customers and/or pose a threat to the orderly operation and integrity of the market.
Within one month, the company must take actions to comply with the aforementioned provisions.
While the suspension of authorization is in effect, as provided for in Article 9 of DI87-05, the company is not allowed to:
- Providing/conducting investment services/activities.
- Conduct any business transaction with any person and accept any new customer.
- Advertise as an investment service provider.
The company, as long as this is in line with the wishes of its existing customers, can take certain actions, such as:
- completing all her own transactions and those of her clients before her, in accordance with the client’s instructions.
- return of all funds and financial instruments attributed to its clients.