The settlement reached is the same as that announced on 31 January 2013 and arises from concerns in the application of the Law regarding among others the organisation/operation structure of the Company. The Company has assured the Commission that all steps have been taken so that full compliance of the Company with the requirements of the Law is being achieved. This should be verified by the Commission at its upcoming inspection of the Company.
Due to the nature of compromise between Reliantco Ltd. and Cysec, the company has not had to admit to any breach of regulations and it is Cysec’s official position that the company has been deemed not to have breached any regulations.
According to a representative at Reliantco Ltd. Cysec were concerned with the ‘Company’s disproportionate high growth rate compared to its increase in personnel’ and in response to such concerns Reliantco would ‘In an effort to satisfy CySEC’s requirement the Company shall continue to expand its team of global financial experts at an increasing rate specifically at its Cyprus head office’. This appears to be an omission that Reliantco Ltd. didn’t really have a sufficient presence in the jurisdiction of Cyprus. Many have previously stated the apparent strong links that UFX Markets has to Israel, so now it appears that UFX Markets may have a more permanent base in on the isle of Cyprus.
However, it is disappointing that Cysec failed to clear up what occurred regarding the first issuing of the letter and its subsequent recall. All in all, the whole debacle has undermined the value of Cysec regulation at least in my eyes.