CySEC compensation fund removals took effect for Conotoxia Ltd, TTCM Traders Trust Capital Markets Ltd and OBR Investments Ltd on June 17 after each firm lost its CIF authorisation.
The Investor Compensation Fund withdrew the three memberships under paragraph 6 of Directive DI87-07. However, the move does not cancel covered clients’ rights to compensation for business completed before the memberships ended.
Conotoxia Ltd was the only firm that lost its licence after regulatory action. CySEC withdrew Conotoxia’s authorisation on June 5, based on a board decision dated December 22. The regulator said the firm no longer met the conditions of its authorisation.
CySEC Compensation Fund Removals Follow Licence Losses
CySEC cited several issues in Conotoxia’s case. These included the suitability of a board member and a shareholder. Additionally, the regulator pointed to the need for at least two people to direct the business effectively and to weaknesses in the firm’s organisational arrangements.
Conotoxia held CIF licence 336/17. Meanwhile, TTCM Traders Trust Capital Markets Ltd held CIF licence 107/09, and OBR Investments Ltd held CIF licence 217/13.
TTCM and OBR left the market through voluntary licence renunciations. TTCM requested the renunciation of its licence on a decision dated May 14. OBR made the same request in February.
Voluntary Exits by TTCM and OBR
No breach findings were attached to the exits of TTCM or OBR. In contrast, Conotoxia was removed after CySEC found that it no longer satisfied its licensing conditions.
The compensation fund action came after CySEC had already withdrawn each firm’s CIF authorisation. Therefore, the ICF decision marked the next step in that process rather than a separate licensing event.
LeapRate said two of the three firms gave up their Cyprus licences voluntarily, while only Conotoxia was forced out.
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