CYSEC Reaffirm Cedar Finance Continual Suspension

cedar finance and Cysec

Last year on 19th December 2013, the Cyprus Securities Exchange Commission (CYSEC) announced that the leading binary broker Cedar Finance’s operating license was suspended because of “suspicions for an alleged violation of the requirements for authorization.” the announcement also indicated that T.B.S.F. Best Strategy Finance Ltd, the holding company of Cedar Finance, have one month from the date of the announcement to get their house in order.

Cedar Still Suspended 2 Months Later

Although more than two months have passed, T.B.S.F. Best Strategy Finance Ltd has still not managed to sort out their problems with the CYSEC. Subsequently, on 21st February 2014, it was announced by CYSEC that that “the authorisation of the Cyprus Investment Firm, T.B.S.F. Best Strategy Finance Limited, with number 213/13, continuous to be suspended, pursuant to section 26(2) of the Investment Services and Activities and Regulated Markets Law.”

It was also pointed out by CYSEC that while the suspension is in effect, “…the Company cannot, pursuant to section 26(5) of the above mentioned Law, provide directly or via its website investment and ancillary service….” A check at Cedar Finance’s website from certain countries revealed that access is limited and visitors are greeted with a notice which says “Access to the service from your country has been temporarily disabled….” However, despite restricted access from certain countries, their website is still fully accessible from most major European countries.

Considering that more than 60 days had passed since the date suspension and Cedar Finance have yet to comply with the directive from CYSEC to comply with the requirements of the Investment Services and Activities and Regulated Markets Law for the reinstatement of its license is very revealing about the intention of the broker. Rumours have been going around that the Cedar Finance might be having second thoughts about the benefits of being regulated by CYSEC. Nevertheless, the Cedar Finance has still not voluntarily renounced its CYSEC’s operating license.

Why is This Broker Not Complying?

For us, this immediately raises red flags. Here, we have a broker which is dragging its feet in complying with the requirements of its license and blatantly disregarding the directive issued by CYSEC not to “…provide directly or via its website investment and ancillary service….” If this is the attitude taken by the broker towards a regulatory body what more to say about its treatment of its clients? It does give food for thought about the operating standards which this broker aspires to achieve. As for now, we can only advise traders to be extra vigilant when dealing with this broker until the situation is cleared up.

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