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Roundup: CySEC refuses comment on supervision of IronFX investment firm

Xinhua, November 18, 2016 Adjust font size:

The Cypriot Securities and Exchange Commission (CySEC) has refused to comment on information regarding the supervision of IronFX Global Limited, a Cyprus Investment Firm (CIF) that has come under investigation and been sued in Cypriot courts for refusing to release funds to clients.

"CySEC will not make any comment," an official told Xinhua on Wednesday when asked to provide further information regarding new correspondence between CySEC and Andros Kyprianou, the chief of AKEL, the largest opposition party with a commanding position in parliament.

Embattled investment company IronFX was fined 300,000 euros(319,655.89 U.S. dollars) in November 2015, after a settlement reached with CySEC for acts or omissions in violation of the legislation under it had been licensed to operate as an investment firm.

Kyprianou wrote to CySEC in May 2015 asking why it had not withdrawn IronFx's license for non-compliance with law requirements three months after it had been fined, as it had done in the case with other investment firms.

CyCEC replied to Kyprianou that the company was still under supervision.

An AKEL party source said that Kyprianou pursued his interest in the case with a letter on Oct. 4, 2016, to CySEC President Demetra Kalogirou, requesting further information about developments in the case of IronFX.

He requested information whether the administrative investigation regarding the CIF IronFX initiated after its fining had been completed and what the results were.

"We would also like to be informed whether potential risks exist because of the CIF's activities for the position of Cyprus as a center for the provision of investment services," Kyprianou added in his letter.

IronFX has been sued by about 160 Chinese clients and investment brokers in an action filed in a Limassol Court in January 2015, claiming the company failed to meet their withdrawal requests.

The issue of IronFX was raised before the European Parliament at the end of October by Hungarian member of European Parliament Tibor Szanyi.

IronFX claims that it has been acting according to the individual contracts of investors or because investors had been cooperating with rival investment companies in violation of their contracts. Enditem