Pegase Renounces License
Pegase Capital, having already had its license suspended by CySEC, has thrown the towel in and renounced its license, no. 225/14.
Pegase Capital, the owner of www.interactiveoption.com, www.interactive-option.com, www.hellobrokers.com and www.mtxplus.com has now renounced it. This comes after a fairly turbulent six months when in November 2015 it received a €300,000 fine from CySEC. This was followed by having its license suspended by CySEC on the 4th March 2016.
The announcement, dated 26th May 2016, comes thirteen days after Pegase Capital informed CySEC it was renouncing the license on the 13th May. One wonders why the delay?
CySEC states that:
“…. the Company [Pegase Capital] remains under the supervision of the CySEC until it settles its obligations arising from the investment services that lapsed.”
Since Pegase Capital paid little heed to CySEC’s rules in the first place one wonders why they would concern themselves with maintaining the niceties now. It is fairly apparent that many of the binary options operators that have acquired a Cypriot regulatory license only did so as a marketing device. This being the case, it may be that there is absolutely nothing CySEC can do now to enforce the owners of Pegase to honour their obligations to their clients.
November €300,000 Fine
In November when dishing out the €300,000 fine to Pegase CySEC alleged that Pegase “…failed to act fairly, honestly and professionally…” in relation to various of its activities, and that was when Pegase perceived they needed a license. Now they have basically told CySEC where they can put their license it may well be that the clients are now going to have to whistle for their refunds.
AMF Gets Involved
In the CySEC announcement absolutely no advice is provided to the clients of the aforementioned brokers, i.e. interactiveoption, interactive-option, hellobrokers and mtxplus. Instead, France’s AMF has stepped into the breach with this advice on its own website:
“…..the AMF recommends that investors who have opened an account on one or more of these websites immediately send a registered letter to Pegase Capital Ltd and a copy of this letter to the CySEC asking that their account(s) be closed, that they be reimbursed any balances, and, depending on the situation, putting forward a complaint.”
It then provides CySEC’s address! This would be hilarious if it wasn’t so embarrassing for the Cypriot regulator.
Since the original publication CySEC have provided a clarification of the announcement.