Leverate Losses ICF Membership & CIF Authorization

Cyprus Securities and Exchange Commission (CySEC) recently addressed the Investors Compensation Fund (ICF) and the termination of membership status for Leverate Financial Services Ltd.

According to CySEC, Leverate Financial Services Ltd.'s loss of ICF membership doesn't mean clients covered under the fund lose their right to compensation for previous investment activities. The criteria for compensation as per the Directive remain intact.

The decision to withdraw ICF membership followed CySEC's move to revoke Leverate Financial Services Ltd.'s authorization as a Cyprus Investment Firm. Leverate Financial Services Ltd. voluntarily relinquished its authorization, leading to CySEC's withdrawal of CIF authorization on December 4, 2023. This action barred the company from operating under CySEC's supervision, with no mention of a judicial review, implying finality pending legal developments.

View WikiFXs evaluation on Leverate here: https://www.wikifx.com/en/dealer/9351661905.html

In 2023, CySEC conducted over 700 inspections, both on-site and remote, on supervised entities, imposing fines exceeding $2.2 million to ensure regulatory compliance and protect investors. Thematic audits focused on entities affected by Russia-Ukraine sanctions, examining their business relationships and probing forced transfers of Russian securities.

The Market Surveillance and Investigations Department completed 42 investigations, with one case referred to the Attorney General for possible criminal prosecution, while ongoing inquiries totalled 48 by year-end. CySEC imposed administrative penalties totalling approximately €2.2 million, with one investment firm facing a penalty of €1 million.

Over three years, sanctions totalling €6 million have been imposed, primarily against investment firms for regulatory breaches. In comparison, the UK's Financial Conduct Authority revoked licenses for 1,266 unauthorized firms and issued record fines of £52,802,900, while U.S. regulators collectively imposed fines exceeding $9 billion. CySEC also directed entities to rectify issues in 103 cases, with 35 entities required to comply with anti-money laundering and counter-terrorist financing laws.

Moreover, CySEC revoked or suspended licenses for 19 investment firms and two collective investment undertakings. In an exclusive interview, George Theocharides, CySEC's Chairman, emphasized cryptocurrencies and artificial intelligence as key regulatory concerns, foreseeing their transformative impact on the financial sector.