The Cyprus Securities and Exchange Commission (CYSEC) announced that it is withdrawing the Investors Compensation Fund (ICF) membership of Otkritie Capital Cyprus Ltd. The broker previously voluntarily withdrew its Cyprus Investment Firm (CIF) membership.
The loss of membership in the compensation fund does not mean that existing customers are not protected. In its notice CYSEC indicated that “in accordance with paragraph 6(3) of the Directive, the loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients.”
As such, remaining customers of Otkritie Capital can rely on the regulator and the ICF for protection against any issues that may have arisen during the broker’s full CIF authorization or licensed activity in Cyprus. Otkritie Capital becomes the next broker among others to cancel their Cypriot authorization license and exit the regional market.