Cyprus financial regulator CySEC has announced that the authorisation of Cyprus Investment Firm Conotoxia Ltd, with number 336/17, is suspended. The regulator said it took the action to suspend Conotoxia’s license as there are suspicions of an alleged violation of section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017, as the Company does not appear to comply at all times with the authorisation conditions in:
1. Sections 9(2) and 9(16) of the Law regarding its board of directors and the persons who must effectively direct the business of the Company,
2. Section 11(1)(b) of the Law regarding the suitability of the shareholders,
3. Section 17(2) of the Law, as specified in articles 21(1)(a) and 22(1) and 22(2)(a) of the Delegated Regulation (EU) 2017/565 (the ‘Regulation’) and senctions 17(5)(b) of the Law, as specified in articles 23(1)(a) and 24(a) of the Regulation, regarding its organizational requirements.
CySEC’s move comes a little late against the Cyprus subsidiary of Poland based Conotoxia, as the company’s websites conotoxia.com and cinkciarz.pl have already been taken down, following action taken earlier this year by Poland’s regulator KNF against the group.
CySEC said that the above decision was reached as the aforementioned alleged violation causes concerns and risk relating to the protection of the Company’s clients or the investors and constitute a threat to the orderly operation and integrity of the market.
Within one month, the Company must take the necessary actions to comply with the aforementioned provisions. For as long as the suspension of the authorisation is in force, as provided for in section 9 of DI87- 05, the Company is not permitted to:
- Provide/carry out investment services/activities.
- Enter into any business transaction with any person and accept any new client.
- Advertise itself as a provider of investment services.
The Company, provided this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05:
- Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
- Return all funds and financial instruments which are attributable to its clients.
