CySEC publishes Announcement for Clients of Suspended Broker AFX

The Cyprus Securities and Exchange Commission (‘CySEC’), wishes to draw the attention of the clients of AFX Capital Markets Ltd (‘AFX’) to the following:

1.Investigation

As per the announcements on 19 July 2019 and 1 November 2019, CySEC is conducting an investigation for the alleged violation of section 22(1) of Τhe Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’) due to the AFXs possible noncompliance with the authorisation condition in section 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, for the Safeguarding of funds belonging to clients.

Despite the complexity of this particular investigation, CySEC aims to finalise it as soon as possible.

It should be noted that in the meantime AFXs license remains suspended.

2.Deficit in client funds

The information gathered so far suggests that there is a material amount of client funds missing. At this stage, no decisive conclusion can be reached with regards to the size of this deficit which is subject to CySECs ongoing investigation.

3.Procedure for the submission of complaints against AFX

As per the announcement on 1 November 2019, CySEC and the Financial Ombudsman have established an exemption to the normal complaint procedure.

Specifically, AFX clients can submit their complaint through the respective websites, without a unique reference number (URN).

More information on the procedure to file a complaint is available on CySECs website: https://www.cysec.gov.cy/en-GB/complaints/how-to-complain/no-ref/.

CySEC advises the clients of AFX to frequently check the CySEC website for updates on the status of AFX and any developments.