3 August 2022 CYSEC Decision Announcement date: 03.08.2022 CySEC Decision date: Regarding: VPR Safe Financial Group Limited Legislation: The Investment Services and Activities and Regulated Markets Law Subject: Partial suspension of CIF licence Judicial Review: Click here Judicial Review Ruling: 03.08.2022 Click here The Cyprus Securities and Exchange Commission announces that the authorisation of the Cyprus Investment Firm VPR Safe Financial Group Limited (LEI 5493005LFR3XVSOHOS43) (‘the Company’), number 236/14, is partially suspended, pursuant to section 10
(1)of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the DI87-05’), as there are suspicions of: A. An alleged violation by the Company or via its tied agent France Safe Media (‘the Tied Agent’), which the Company appointed and acts on its behalf in France, of: 1. Article 22
(1)of The Investment Services and Activities and Regulated Markets Law of 2017 ('the Law') as the Company does not appear to comply at all times with the authorisation condition laid down in article 17
(2)of the Law, regarding the organisational requirements with which it is required to comply (establishment of adequate policies and procedures). 2. Article 25
(1)of the Law as the Company does not appear to act honestly, fairly and professionally when providing investment services to clients. 3. Article 25
(3)(a) of the Law as the Company does not appear to ensure that all information, including marketing communications, which it addresses to clients or potential clients is fair, clear and non-misleading.
- Article 42 of Regulation (EU) No. 600/2014 as the Company does not appear to comply with paragraph 5 of Directive for the Restriction on the Marketing, Distribution, and Sale of Contracts for Difference (CFDs) to Retail Clients (DI87-09), regarding the prohibition of participating in circumvention activities.
- Article 26
(1)of the Law as the Company does not appear to ensure that natural persons who provide investment advice or information to clients on its behalf, have the necessary knowledge and competence to fulfil their obligations. 6. Article 26
(3)(a) of the Law as the Company, when providing investment services, does not appear to obtain from a client information about his knowledge and experience in the investment field, relevant to the specific type of product or service offered or requested, so that the Company can assess whether the proposed investment service or product is suitable for the client. B. An alleged violation by the Company of article 30
(2)(b) of the Law as the Company does not appear to monitor the activities of its Tied Agent to ensure continuous own compliance with the Law. Partial suspension of the Company's authorisation concerns a Prohibition to provide/exercise investment services/activities in the territory of France, including the provision of services through the Tied Agent, which entails the following:
- Prohibition to accept any new clients from the territory of France and entering into a business relationship with them.
- Prohibition to advertise as a provider of investment services in the territory of France. To ensure this, the Company is prohibited from marketing/advertising its services to current or potential clients in the territory of France and from communicating, in any way, with current or potential clients in the territory of France for this purpose either directly or via third parties with whom the Company cooperates for customer support, including the Tied Agent.
- Prohibition in receiving new deposits from current clients from the territory of France, unless this concerns the covering of the necessary initial margin of an existing open position following clients’ own explicit request. The above decision was reached on the basis of findings communicated to the Company by the competent supervisory authority of France, Autorité des marchés financiers ('AMF'). Within two
(2)months, the Company must take the necessary actions in order to comply with the aforementioned provisions. For as long as the suspension of the authorisation is in force, as provided for in section 9 of DI87-05, the Company, provided this is consistent with the wishes of its current clients, may proceed with the below actions, without such actions being considered as breach of section 9
(7)(a) of DI87-05:
- Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
- Return all funds and financial instruments which are attributable to its clients. em/cg