The Cyprus Securities and Exchange Commission (“CySEC”) has notified the Malta Financial Services Authority that following its investigation of the Cyprus Investment Firm (‘CIF’) AFX Capital Markets Ltd (‘the Company’)’s compliance with The Investment Services and Activities and Regulated Markets Law, it held a meeting on 19 July 2021 and decided:

1. To withdraw the Company’s CIF authorisation Number 119/10, pursuant to sections 76(1)(c), 8(1)(c) και 8(1)(d) of The Investment Services and Activities and Regulated Markets Law of 2017 (‘L. 87(I)/2017’);
2. That the Company’s Members of the Board of Directors, Manuela Mazzacco, Andreas Lianos, Costas Georgiades, Elena Economides Demetriou and Andreas Papagapiou, have not complied with section 10(1)(a) of L. 87(I)/2017, as, while acting as Members of the Board of Directors of the Company, they did not define, and in effect did not oversee the implementation of, governance arrangements that ensure the effective and prudent management of the Company, in a manner that promotes the integrity of the market and the interest of clients. At the material time, there was no compliance with the principles mentioned in section 10(1)(b), points (i), (ii) και (iv), of L. 87(I)/2017. In this respect, administrative fines and measures were imposed on the aforementioned individuals as set out in CySEC’s decision; and
3. To impose administrative fines on the Company’s auditors, namely an administrative fine of  €100,000 on BDO Ltd, and an administrative fine of €100,000 on Anthimos, Leonidou and Partners Ltd, for the violation of section 139(1) of the Investment Services and Activities and Regulated Markets Law of 2007 (L. 144(I)/2007), pursuant to section 141(1) of the said law, as they did not ensure or secure the correctness, completeness and accuracy of the report submitted to CySEC, pursuant to section 116 of L. 144(I)/2007, regarding the suitability of the measures taken by the Company for the protection of clients’ money.

Further detail in relation to the above can be obtained from the decision taken by CySEC dated 23 December 2021 which has been published on CySEC’s website.