The Cyprus Securities and Exchange Commission (CySEC) has announced the full suspension of the authorisation of the Cyprus Investment Firm Mind Money Limited. The firm, which holds licence number 115/10 and Legal Entity Identifier (LEI) 549300OBDWYLEP2V5I94, is subject to this measure pursuant to section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation.
According to CySEC, the suspension is based on suspicions of an alleged violation of section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017. The regulator states that Mind Money Limited does not appear to comply at all times with certain authorisation conditions under the Law.
Alleged Non-Compliance with Authorisation Conditions
CySEC identifies several specific areas of concern regarding the firm’s compliance with the Law:
- Section 5(5): Concerns related to the carrying out of activities that are not covered by the firm’s authorisation licence.
- Section 9(15): Issues regarding the obligation to notify CySEC of changes to the company’s board of directors.
- Section 9(16): The requirement for the company to have two persons who effectively direct its business activities.
- Section 11(1)(b): Matters relating to the suitability of the firm’s shareholder.
CySEC notes that the alleged violation raises concerns and risks relating to the protection of the company’s clients and/or constitutes a threat to the orderly operation and integrity of the market. On this basis, the decision to suspend the firm’s authorisation in whole was taken.
Obligations During Suspension
Within one month, Mind Money Limited must take the necessary actions to comply with the aforementioned provisions of the Law. During the period in which the suspension of the authorisation is in force, the company is not permitted to:
- Provide or carry out any investment services or activities.
- Enter into any business transaction with any person or accept any new client.
- Advertise itself as a provider of investment services.
Despite the suspension, CySEC requires the company to complete all its own transactions and those of its clients that are already before it, in accordance with client instructions. In addition, Mind Money Limited must return all funds and financial instruments that are attributable to its clients.
The decision underscores CySEC’s focus on client protection and the integrity and orderly functioning of the regulated market, by enforcing compliance with the Investment Services and Activities and Regulated Markets Law of 2017 and related directives.
