CySEC Extends CIF License Suspension of FXGM Operator Depaho

The Cyprus Securities and Exchange Commission (CySEC) has further extended the operating license suspension of investment firm Depaho Ltd, the regulator announced on Wednesday.

The Cypriot regulator initially suspended Depaho’s license earlier this month for alleged violations in almost twelve articles and provided two weeks for taking necessary actions for compliance.

Depaho offers leveraged forex and contracts for differences (CFDs) trading services under its brand name FXGM and on the domain www.fxgm.com. The company received its Cyprus Investment Firm license in 2011 and purchased the FXGM brand in 2013 from FX Global Markets (FXGM), which in turn renounced its license in the same year.

More Time to Become Compliant

The latest decision has provided another two month period to Depaho to change its existing practices which are allegedly violating the regulatory framework.

While Depaho’s license is under suspension, the broker operator cannot provide any investment services to existing customers or take new clients. In addition, it has to refrain from any advertisement of its brand and services.

“Depaho Ltd is currently undergoing regulatory review adopting a set of improvements as required by our authority. Whilst implementing the above, please note that we shall not provide/carry out new investment services and/or enter into any business transaction with any person and accept any new client,” the FXGM website shows.

However, the existing clients of the broker can ask to close their open positions and even their withdrawals.

As Finance Magnates reported last year, Depaho settled with the Cypriot regulator for possible compliance lapses, paying €270,000. The company had a similar settlement with the regulator in 2015 for several compliance shortcomings.