On 10 September 2021, the Cyprus Securities and Exchange Commission (“CySEC”) notified the Malta Financial Services Authority that it decided to wholly withdraw the authorisation of Belight Capital Group Limited (the “Company”) on 1 March 2021, pursuant to article 9(3)(b) of the DI87-05 Directive on Revocation and Suspension of an Operating License (“DI87-05”) and articles 8(1)(a), 8(1)(c) and 71(6)(c) of the Investment Services and Activities and Regulated Markets Law of 2017 (the “Cypriot Law”). CySEC reached this decision as it was not satisfied:
- with the Company’s compliance with Article 22(1) of the Cypriot Law, as to fulfilling at all times the conditions of:
- article 9(16) of the Cypriot Law, on the requirements for the board of directors, and
- article 17(1) of the Cypriot Law, as to the organizational requirement set out in article 17(2) thereof and as is further specified in article 21(1)(d) of Commission Delegated Regulation (EU) 2017/565, regarding the organisational requirements; and
- that the Company has performed investment activity for the six (6) months preceding the decision for the suspension of its license.
CySEC has also decided that the Company is not compliant with articles 92(1)and 93(1) of Regulation (EU) No.575/2013 on prudential requirements.
Due to the withdrawal of the Company’s authorisation, the Company should:
- Publish on all its websites an announcement informing the public about the withdrawal of its license, as well as the procedure to be followed by its clients for the completion of their transactions, the return of their funds and financial instruments, as well as for the submission of any complaints;
- Inform each client separately of the procedure referred to in the above paragraph using the same means of communication that it is using to comply with article 3 of Commission Delegated Regulation (EU) 2017/565;
- Return all funds and financial instruments belonging/attributable to its clients, including any profits;
- Examine and resolve all client complaints submitted to the Company; and
- Ensure it does not provide investment and ancillary services, other than those that are necessary for the completion of the pending transactions on behalf of the Company and its clients, as per their instructions.
Further detail in relation to the above can be obtained from the CySEC Decision dated 10 September 2021 which was published on CySEC’s website.