WikiFX report: 24option and TradeATF renounce CySEC license after FCA ban

At a time when many Retail FX brokers are scrambling to get a CySEC CIF license ahead of the December 31, 2020 Brexit transition deadline, a number of brokers are heading in the other direction.

Cyprus financial regulator CySEC has reported that two Retail FX and CFD brokerage houses, Hoch Capital Ltd and Rodeler Ltd, have voluntarily renounced their CySEC licenses. Hoch Capital Ltd operates the iTrader and TradeATF brands, while Rodeler Ltd operates 24option, which began (as its name implies) as a Binary Options brokerage, but later transitioned to become a “standard” FX and CFDs broker.

It appears as if 24option is continuing to operate website 24option.com as an offshore Belize incorporated entity called Richfield Capital Limited. The company displays on its website that it is an official partner of Italian football club Juventus, however they no longer appear on Juventus list of sponsors and partners on the Juventus website.

The iTrader.com brand seems to have been retired by Hochs shareholders. However the url redirects to the TradeATF website at tradeatf.com, now owned by an offshore entity also in Belize called Bayline Trading Ltd. On its website the company now notes that Global TradeATF is the Digital Sponsor of the Argentine National Soccer Team. The firm, which offers Portuguese and Spanish versions of its website in addition to English, seems to be now mainly targeting traders in South America.

The “voluntary” moves follow trouble that both brokers got into with UK regulator The FCA at the beginning of June. As Cyprus licensed financial companies both 24option and TradeATF were able to “passport” their licenses into the UK and all other EU countries, and operate offices in those locations as well as take retail clients from those jurisdictions. However The FCA banned 24option and TradeATF from the UK, as well as a number of other CySEC licensed brands, in a first-of-its-kind move against passporting brokers.

The FCA cited issues such as unauthorised celebrity endorsements on social media to entice consumers into scams involving CFDs. In addition, the regulator noted that the firms had failed to pay money owed to investors, charged customers undisclosed fees, and failed to tell them about the risks of trading CFDs.

The CySEC notes regarding both Rodeler and Hoch Capital follow.

22 July 2020

CYSEC Decision

Announcement date: 22.07.2020; CySEC Decision date: 06.07.2020

Regarding: Rodeler Ltd

Legislation: The Investment Services and Activities and Regulated Markets Law

Subject: Approval of the timeframe of implementation of actions for the express renunciation of a CIF authorisation

The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform the public that Rodeler Ltd (‘the Company’), with Number 207/13, had notified CySEC of its decision to expressly renounce its Cyprus Investment Firm (CIF) authorisation and, at its meeting on 6th July 2020, CySEC has approved, pursuant to article 4(4) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the Directive’), the Companys proposed timeframe of implementation of actions as provided in article 4(3) of the Directive.

It is noted that all actions of article 4(3) of the Directive should be implemented by the Company prior to CySEC revoking its authorisation.

22 July 2020

CYSEC Decision

Announcement date: 22.07.2020; CySEC Decision date: 06.07.2020

Regarding: Hoch Capital Ltd

Legislation: The Investment Services and Activities and Regulated Markets Law

Subject: Approval of the timeframe of implementation of actions for the express renunciation of a CIF authorisation

The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform the public that Hoch Capital Ltd (‘the Company’), with Number 198/13, had notified CySEC of its decision to expressly renounce its Cyprus Investment Firm (CIF) authorisation and, at its meeting on 6th July 2020, CySEC has approved, pursuant to article 4(4) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘the Directive’), the Companys proposed timeframe of implementation of actions as provided in article 4(3) of the Directive.

It is noted that all actions of article 4(3) of the Directive should be implemented by the Company prior to CySEC revoking its authorisation.