Much like the decisions of various other FX brokers opting to renounce their Cyprus authorizations, the Cyprus Securities and Exchange Commission (CySEC) has announced today that one Otkritie Capital Cyprus Ltd will have its license withdrawn.
Willfully Withdrawing Its Own License
Otkritie Capital Cyprus is controlled, in turn, by Otkritie FC Bank, which stands as one of the largest full-service commercial banks in Russia. Last summer, the brokerage firm had opted to wind down its Cyprus retail brokerage operations.
Citing Section 24(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2007, Otkritie Capital Cyprus Ltd had its CIF authorization, number 069/06, lapse. Otkritie has been rather quick about things from their end, as well, as visiting its website shows that it had already removed any and all references regarding the company being authorized by CySEC.
Time For The Cleanup
Looking at the regulatory manifest of CySEC, it’s clear that Otkritie Capital Cyprus had its CIF authorization withdrawal be due to its own request, with a voluntary surrender of its license. Thus, no regulatory action from the watchdog was the cause of this license withdrawal.
In accordance with the regulatory framework of Cyprus, the company is now mandated to return any and all outstanding balances to its Cypriot clients. Alongside this, all complaints made to the company must be handled, as well. Otkritie Capital Cyprus has further been mandated to provide an external auditor’s confirmation that no pending obligations are remaining after all of this, with details of each of the company’s clients attached.
Some Details About Otkritie
Otkritie Capital itself offers various brokerage services, offering it for derivatives, equities, forex, fixed income, and commodities. The company itself was founded back in 2002, having been formerly called Otkritie Securities Limited. In June of 2014, the firm rebranded to Otkritie Capital International Limited. The firm itself boasts offices in Limassol, Moscow, and New York, with its main headquarters situated in London.
As for the Russian brokerage arm of Otkritie, in particular, the firm boasts regional offices spread across over fifty Russian cities, boasting a massive network that’s further part of a large financial services group. This group offers its customers everything from investment, banking, life insurance, and pension plans solutions.
With any luck, the entire matter can be handled without any form of hiccups. With Otkritie working alongside CySEC in this move, it’ll only be a matter of time before the business is wound down in such a way where no consumer gets damaged because of it.