Hoch Capital Ltd (trading as iTrader and TradeATF) and Rodeler Ltd (trading as 24option) have informed the Cyprus Securities and Exchange Commission (CySEC) of their intentions to renounce their Cyprus Investment Firm (CIF) authorizations.
Today, the Cypriot regulator said that, at its meeting on July 6, 2020, it approved, the proposed timeframe of implementation of actions by the companies prior to CySEC revoking their authorisation.
Lets recall that, on June 1, 2020, CySEC said it was suspending the CIF authorizations of these brokers.
As FinanceFeeds reported in June, the UK Financial Conduct Authority (FCA) barred Hoch Capital Ltd (trading as iTrader and TradeATF) and Rodeler Ltd (trading as 24option) from offering CFD trading services in the UK. The regulator said that these firms used unauthorised celebrity endorsements on social media as part of their marketing. The firms used social media and webpages carrying fake endorsements from celebrities to entice consumers into the scams involving CFDs.
The FCA estimates that UK investors have lost hundreds of thousands of pounds in these investments. A number of customers are known to have lost more than £100,000 to the schemes.
The orders require the companies to stop selling CFDs to UK customers, to close existing positions with UK customers, to return UK customers‘ money and to notify UK customers of the FCA’s action.
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