The Cyprus Securities and Investment Commission (CySEC) announced on February 1st, 2023, that it has banned FF Simple and Smart Trades Investment Ltd, operating as Toro Invest and Tradocenter. The regulator accused the company of using its operational license against its regulations.
The company had previously announced that it was ending operations within the regulator’s jurisdiction. Since this announcement, there have been several speculations of likely rancor between the regulator and the company.
Details of CySEC ban on Toro Invest Operator and Tradocenter
FF Simple and Smart Trades Investment Services Ltd. publicly renounced its CIF license via a notice on Toro Invest and Tradocenter’s official websites. The notice read that the company would terminate its trading services on August 7th, 2022. This action spurred the meeting of CySEC officials on November 28th, 2022.
According to CySEC, the renunciation of FF Simple’s CIF license was voluntary and not a reaction to the regulations or new policies of the regulatory body. The regulator stressed that the company’s move is in line with section 4(7) of Directive DI87-05 and section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017.
Contrary to online speculations about this incident, this isn’t the first time CySEC has banned a CySEC broker for relinquishing its license. In 2022 alone, three other companies; Finteractive Ltd, Sharelink Securities & Financial Services Ltd, and IFC Investments Cyprus Ltd were banned from using their Cyprus Investment Firm licenses after renouncing it.
The details of FF Simple’s relinquishing its license and the CySEC ban are still unknown. However, CySEC has emphasized that it “will continue to expose fraudulent platforms within the region and penalize businesses that fail to comply with its regulations.
What’s next for the Toro Invest Operator and Tradocenter?
Before the renunciation, the company operated Toro Invest and Tradocenter with its CySEC license. Hence, retail and business clients could use either of the platforms to trade FX and CFDs on margin, irrespective of region and language.
The company will no longer offer its investment services to individuals or organizations. However, CySEC will grant the company a three-month grace period to ensure the business complies with its licensing requirements, including refunding any outstanding sums to its customers and resolving all their complaints.
FF Simple ceased operations in the region in 2022 but is yet to give an official statement on the withdrawn license. The company, however, put a notice on its website which reads, “Please visit our website at a later time for updates.” As of the time of publishing this report, there has been no response or reaction from the company.
