The Cyprus Securities and Exchange Commission (CySEC) announces that it has decided to withdraw the Cyprus Investment Firm (CIF) authorisation of Maxigrid Ltd, operator of brands such as Dualix and AGM Markets.
CySEC reached the decision due to the company’s non-compliance with article 22(1) of the Law, in fulfilling the condition of article 17(9) of the Law at all times, as this is further specified in paragraphs 4(1) and 6(1) of the Directive DI187-01 for the Safeguarding of Client Assets, Product Governance Obligations and Inducements, with regard to the safeguard of clients’ funds.
It is noted that, since 15 October 2021, Maxigrid’s auhorisation has been in suspension.
Due to the withdrawal of its authorisation, Maxigrid must:
- Ensure it does not provide investment and ancillary services.
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Immediately and without delay, ensure that all references in its websites and anywhere else, relating to the provision/carrying out of investment services/activities, as well as references to its licensing and regulation by the CySEC, are deleted.
In March 2021, CySEC said a settlement had been reached with Maxigrid for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 – L.87(I)/2017. The settlement follows an investigation which involved assessing, for the period January 2019 until August 2020, the company’s compliance with:
- Article 25(1) of the Law, regarding general principles and information to clients.
- Article 5(5)(b) of the Law, regarding the requirement for CIF authorization.
The settlement reached with the company for the possible violations was for the amount to €75,000.
In June 2020, the UK Financial Conduct Authority (FCA) banned Maxigrid Limited. The FCA noted that its action came after the CFD provider had decided to cease to provide any investment services in the UK.