CySEC revokes Cypriot investment firm’s license due to compliance issues

The Cyprus Securities and Exchange Commission (CySEC) announced this week the suspension of the Cyprus Investment Firm (CIF) license of WG Wealth Guardian Ltd.

This decision, which the Commission officially took on May 28 and announced later in the week, was based on suspected violations of the Investment Services and Activities and Regulated Markets Act 2017.

CySEC stated that it suspects that WG Wealth Guardian Ltd has not consistently complied with the authorisation requirements laid down in law.

Specifically, the company is alleged to have breached the initial capital requirements under Section 16 of the Act and Section 9(3) of the Investment Firms Prudential Regulation Act 2021.

In addition, there are concerns regarding the safeguarding of clients’ financial instruments and funds and the deposit of client funds, as set out in Section 17(9) of the Act and further explained in Directive DI87-01.

The alleged violations have raised doubts about the protection of the company’s customers and the integrity of the market.

For this reason, CySEC has decided to suspend the Company’s authorisation in accordance with Section 10(1) of the DI87-05 Directive on the Withdrawal and Suspension of Authorisation.

In addition, the Commission stated that WG Wealth Guardian Ltd had one month to take the necessary measures to comply with the relevant provisions.

During the suspension, the cThe company is prohibited from providing investment services, entering into business relationships, accepting new clients or advertising itself as a provider of investment services.

However, the company may Existing transactions and to return funds and financial instruments to its clients according to their wishes.