It’s been more than eight months since the Securities and Exchange Commission (CySEC) withdrew the Cyprus Investment Firm (CIF) license of Maxigrid, which operates the brands Dualix & AGM Markets.
Today, the Cypriot watchdog announced the initiation of the process of compensating the clients of the now-defunct FX broker after the company was forced out of business due to many violations.
The process involves the CySEC inviting clients to the claims portal for them to enter the necessary details and state their claims. Covered clients must submit their claims against the company, if any, by the 30th of April 2023.
The regulator further explains that applications to the ICF may be submitted in one of the following two ways:
- a) By filling in the online application form which can be found on the CySEC website http://www.cysec.gov.cy/en-GB/complaints/tae/application/
- b) By submitting a simple letter to the offices of the ICF, accompanied by all supporting evidence: The letter/application may be sent by post or be delivered by hand to: The Investor Compensation Fund, 19 Diagorou Str., 1 st floor,1097 Nicosia, Cyprus.
Earlier in June, the Cypriot watchdog hit the operators of Maxigrid Limited with regulatory bans and fiscal penalties for violations of the local Investment Services and Activities and Regulated Markets Law.
In relation to the fine, CySEC stated that Maxigrid breached its conduct of business obligations when providing investment services to clients. It also failed to submit financial accounts and other information required by CySEC in a complete and accurate manner.
The watchdog blamed the company’s shareholder and former non-executive president of board, Roy Almagor, and executive directors Jekaterina Pedosa and Katerina Papanicolaou over their omission and negligence during their time in office.
Almagor was ordered to pay €20,000 in fines and was also banned from acting in a management capacity relating to the financial sector for five years.
CySEC also penalised executive directors Jekaterina and Katerina with a collective fine of €20.000 and were also banned from any functions within the local industry for five and two years, respectively.
Furthermore, a panel of non-executive directors including Nikolai Monogarov, Alexis Zampas, Pavlos Iosifides and Ioannis Chasikos were each barred from any administrative roles.
This decision is based on the findings of CySEC’s investigation into the company’s activities and has taken into account among other factors the seriousness attributed to such infringements.
