CySEC Reverses Course: Alvexo's FX/CFD License No Longer Suspended

<p>The Cyprus Securities and Exchange Commission (CySEC) has revoked its previous decision to suspend the authorization of Cyprus Investment Firm (CIF) VPR Safe Financial Group Ltd. The regulatory body stated that the FX/CFD retail trading brand Alvexo operator has met all compliance requirements.</p><p>CySEC Revokes Decision to Suspend Alvexo's FX/CFD License</p><p>The CySEC
initially suspended VPR Safe Financial Group Ltd's authorization in August
2022. However, the firm has since demonstrated <a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> with several key
regulatory requirements, leading to the lifting of the suspension. Therefore,
the regulatory body <a href="https://www.cysec.gov.cy/en-GB/public-info/decisions/95581/?uuid=24102023114824" target="_blank" rel="nofollow">decided to reverse its earlier decision</a>.</p><blockquote><p lang="en" dir="ltr">VPR Safe Financial Group, the trading operator of <a href="https://twitter.com/hashtag/Alvaxo?src=hash&amp;ref_src=twsrc%5Etfw">#Alvaxo</a> <a href="https://twitter.com/hashtag/FX?src=hash&amp;ref_src=twsrc%5Etfw">#FX</a> <a href="https://twitter.com/hashtag/CFD?src=hash&amp;ref_src=twsrc%5Etfw">#CFD</a> retail broker, is no longer suspended by <a href="https://twitter.com/hashtag/CySEC?src=hash&amp;ref_src=twsrc%5Etfw">#CySEC</a>. The regulator changed its decision after more than a year. <a href="https://t.co/m8233fBZav">pic.twitter.com/m8233fBZav</a></p>— Damian Chmiel (@ChmielDk) <a href="https://twitter.com/ChmielDk/status/1716745070198550744?ref_src=twsrc%5Etfw">October 24, 2023</a></blockquote><p>The license suspension a year ago occurred due to alleged violations of licensing rules by CIF or its tied agent in France, France Safe Media. As a result, the company was unable to provide its services or offer products in France. </p><p>Importantly, this was not <a href="https://www.financemagnates.com/tag/alvexo/" target="_blank" rel="follow">Alvexo's</a> first encounter with <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">CySEC</a>. In March 2021, the company agreed to a settlement of €100,000 for possible violations of CySEC laws.</p><p>How CySEC Explains Its Decision</p><p>For
example, VPR Safe Financial Group Ltd has met the organizational requirements in Section 17(2) of the Investment Services and Activities and
Regulated Markets Law 2017. The firm has also acted fairly, honestly, and
professionally when providing investment or ancillary services to clients, as Section 25(1) of the Law stipulated.</p><p>Moreover,
the company ensured that all its communications, including <a href="https://www.financemagnates.com/terms/m/marketing/">marketing</a> materials,
are fair, clear, and not misleading, in line with Section 25(3)(a) of the Law.
The firm also complied with Article 42 of Regulation (EU) No 600/2014,
particularly concerning prohibiting participating in circumvention
activities related to CFDs.</p><p>In addition,
VPR Safe Financial Group Ltd has fulfilled its obligation to ensure that its
representatives have the necessary knowledge and skills to provide investment
advice, as required by Section 26(1) of the Law. The company also obtained
sufficient information from clients to assess the suitability of its investment
products, as per Section 26(3)(a).</p><p>Lastly, the
firm has been vigilant in monitoring the activities of its tied agents to
ensure ongoing compliance with the Law, fulfilling the criteria set out in
Section 30(2)(b).</p><p>Unlike Alvexo, FTX EU Ltd, a remnant of the successful crypto exchange FTX, <a href="https://www.financemagnates.com/cryptocurrency/cysec-prolongs-ftx-license-suspension-until-march-2024/" target="_blank" rel="follow">was less fortunate</a>. CySEC announced this week that the suspension of its license has been extended until March 2024.</p>

This article was written by Damian Chmiel at www.financemagnates.com.