FCA takes passports from Cypriot firms

FCA has used its power to remove passporting rights from overseas firms for the first time.  It has removed the passports of four Cypriot firms that appear to have used unauthorised celebrity endorsements as part of their social media marketing.

The firms provide CFD services, and have been required to stop selling CFDs to UK customers, to close existing positions with them, to return UK customers’ money and to notify their UK customers of FCA’s action.

The firms have no UK presence, and as a result of FCA’s action, the Cypriot regulator has fully suspended the authorisation of 2 of the firms and partially suspended that of the others.

Emma Radmore