The possible violations of The Investment Services and Activities and Regulated Markets Law of 2007 by AFX Capital Markets Ltd have been the talk of the week. The allegations that it has can be a serious hit for the company. However, it has just been found out that The Cyprus Securities and Exchange Commission (CySEC) has reached a settlement with the company regarding the issue.
On our webpage, we try to make it very simple for our readers to understand what has been going on in the market. We try to reach people with every caliber of knowledge about the market so we will offer the news in both simplified and term-heavy ways. To put it simply AFX Capital Markets Ltd failed to comply with the regulations that have been specified by the CySEC. More specifically they have failed to comply with section 28 (1) of L. 144(I) /2007, which says that all CIFs (Cyprus Investment Firms) must comply with Part 3 of L. 144(I)/2007.
Section 18(2) states that a CIF must always, avoid additional risks when delegating its services on a third party. This is crucial in order to avoid any type of detriment to the client’s experience. In addition, the CySEC must not have any problems with regulating the process of this outsourcing.
The negotiations have been going on for a few days but it has already been decided that AFX Capital Markets Ltd will have to pay an amount of €50,000 in fines to the CySEC. The company has already acknowledged its responsibility and taken the lead by paying all of it.
On the other hand, you may have heard about the news when Gallant Capital Markets Ltd, filed Chapter 11 bankruptcy. There is an advisory proceeding against AFX Capital Markets Ltd., AFX Capital U.S. Corp and Super Trading Online (STO). It is believed that right before Gallant Capital Markets Ltd filed for bankruptcy the above mentioned 3 parties influenced it by literally wiping out the remainder of the balance that the company had.
Earlier this month an amended complaint was received from a Chapter 11 Trustee of Avenica Inc. and Gallant Capital Markets Ltd, by the name of Esther Duval. The focus being the relationship status of AFX Capital Markets and AFX Capital U.S. Even though they carry the distance of a sea and an ocean is looking to be getting to these 2 entities.