Removal of these firms’ permission to sell contracts for difference (CFDs) to UK consumers
UK consumers should be aware that these Cyprus registered firms no longer hold relevant permissions to conduct regulated activities with UK consumers. This follows FCA receipt of notifications from the Cyprus Securities and Exchange Commission (CySEC) about the provision of investment services by these firms, which operate under CySEC authorisation and have previously marketed into the UK utilising the EEA passport regime.
The CySEC notifications confirmed that these three CFD providers had decided to cease to provide any investment services in the UK as follows:
- Maxiflex Ltd, as of 4 June 2020 (see our Register confirming “Status: Cancelled”);
- Maxigrid Limited, as of 5 June 2020 (Register, “Status: Cancelled”); and,
- Reliantco Investments Ltd, as of 11 June 2020 (Register, “Status Cancelled”).
Information for consumers with accounts at these firms
As of the relevant dates above, these firms are no longer permitted to open new accounts for consumers in the United Kingdom.
Existing UK account holders with open positions and/or cash balances should review notifications provided on the respective firms’ websites and/or firm communications to UK clients sent by email or available at account log-in.
The firms should clearly set out the process and timelines for their ongoing interactions with their existing UK-based customers.
UK consumers who are not satisfied with any aspect of the handling of their trading accounts should first complain to the firm directly.
The firm must acknowledge receipt of your complaint within five days and then provide a material response within two months, telling you whether the complaint has been successfully resolved or why they need more time to look in to it (up to a maximum of three months from the day of complaint).
If you are not happy with the firm’s response, or they fail to respond, you can ask the Cyprus Financial Ombudsman to consider your complaint.
Fuller detail of the Cypriot complaints process is available on the CySEC website here.