FCMC announces about investment service provider Xtrade Europe Ltd partial suspension of CIF license

02.06.2017
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Riga, 02.06.2017

Press Release 

FCMC announces about investment service provider Xtrade Europe Ltd partial suspension of CIF license

The Financial and Capital Market Commission (hereinafter – the FCMC) announces that the authorisation of the Cyprus Investment Firm Xtrade Europe Ltd (previous name: XFR Financial Ltd, license number 108/10; hereinafter – the Company) is partially suspended according to the Cyprus Securities and Exchange Commission (hereinafter – the CySEC) decision dated 29.05.2017 which foresees restrictions for the provision of financial services and the performance of financial activities to new clients in Cyprus or abroad, including Latvia. The Company can continue to provide/perform to its existing clients, investment services/activities. 

The full announcement regarding this decision can be found on the CySEC website http://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=c38a56ca-061b-4f19-9b0b-dbb70d2c2b12

The CySEC decision is grounded on suspicions of an alleged violation of the marketing material disseminated by the Company and/or its associates where the material does not seem to be fair, clear and not misleading and possibly implementation of inadequate policies and procedures to ensure control over the marketing material that the Company and/or its associates disseminate. The above decision was adopted considering that the aforementioned alleged violations may possibly jeopardise the Company clients’ interests and fair operation of capital market.

In April and May 2017, the FCMC noticed the promotion of the Company’s investment services/activities in a misleading way on the Latvian internet portal, contrary to the regulatory provisions (according to Article 128, subparagraph 5 of the Law on the Financial Instruments Market of the Republic of Latvia the any investment firm shall ensure that the information provided to customers or prospective customers, including marketing communications, is fair, clear and not misleading), and the FCMC promptly notified the CySEC of above and requested to rectify the detected violations. 

In addition, the FCMC informs that the advertising must provide true information regarding investment services/activities and it is forbidden to provide consumers with misleading information as well as to offer an easy-profit opportunity without clear and explicitly disclosed risks of potential loss. 

Information about authorized investment service providers in Latvia is available on the FCMC website: http://www.fktk.lv/en/market/financial-instruments-market/investment-service-providers.html. Information about investment service providers from other Member States of the European Union authorised to provide investment services in Latvia is available at: http://www.fktk.lv/en/market/financial-instruments-market/service-providers-from-the-eea.html.

For further information:

Agnese Līcīte

Public Relations Specialist 

Communications Division 

Financial and Capital Market Commission 

Phone:  +371 67774808

agnese.licite@fktk.lv

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