The Board of the Cyprus Securities Exchange Commission (CySEC) revealed on Tuesday it has initiated the compensation payment process for Maxigrid Ltd clients under the Investors Compensation Fund (ICF).
The decision was taken on 28 March, however the public announcement was shared on Tuesday.
Maxigrid operates forex and contract for differences (CFDs) trading brands Dualix and AGM Markets. The company ran its business from Cypriot after it secured a Cyprus Investment Firm (CIF) license in 2011.
That was until last February when Maxigrid’s license was withdrawn by CySEC. According to the regulator, the broker violated multiple mandatory compliance rules that led to the cancellation of its license.
In the latest announcement, the Cypriot watchdog noted that the broker “unable to meet its obligations arising out of investors’ claims and has no early prospect of being able to do so.” This has resulted into the initiation of the compensation process under the ICF.
Under the ICF, individual investors’ deposits have protection from CySEC of up to €20,000 in case of the financial services company becomes bankrupt or is unable to return customer deposits.
The brands operated Maxigrid have currently stopped providing services.
A note on Dualix’s website said:
Maxigrid Limited’s license is suspended. The Company is adopting a set of improvements are required by its regulator.