CySEC-Regulated Arm of Capital Index Renounces Cypriot CIF License

The Cyprus Securities and Exchange Commission (CySEC) today made a public notice that Capital Index (Cyprus) Ltd, the Cyprus-based arm of multi-regulated brokerage firm Capital Index, has applied to renounce its .
The Cypriot watchdog made it clear that the Capital Index’s surrender of license is entirely voluntary based on company’s decision and does not arise as a result of any regulatory action taken by the CySEC.
Although the regulator didn’t clearly state why Capital Index has decided to say goodbye to its CIF authorization, it has recently  of their own accord, and not as a result of any regulatory issues.
The reasons leading up to this decision remain unclear, but CySEC will certainly maintain supervision over the financial service company until it has taken care of its responsibilities under the license.
Capital Index (Cyprus) was founded by , who previously established the FX business of ETX Capital and recently joined GKFX as CEO in 2014 and the same year it was granted the CIF license by the Cyprus Securities and Exchange Commission (CySEC).
In 2015, Capital Index opened a London branch office and became authorized and regulated by the UK’s Financial Conduct Authority (FCA). The firm , having more than doubled its profits from the previous year.
Next steps
A visit to the broker’s website reveals that Capital Index (Cyprus) Ltd has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC. The company has also published the following statement to notify clients about the new changes.
 Dear Valued Client, 
We would like to inform you that, Capital Index (Cyprus) Ltd. (hereinafter referred to as the “Company” and/or “CICY”) will cease the provision of investment and ancillary services through the sub-domain www.capitalindex.com/eu/ as at 20th of July 2018 subject to the Company’s decision to proceed with the withdrawal of its Cypriot Investment Firm Authorisation. 
All CICY clients will be notified independently via e-mail/MT4 for further actions in relation to their account(s).
The aforesaid termination does not affect in any way your right to terminate your agreement either now or at a later stage by requesting the closure of your trading account and withdrawal of your available balance. Kindly note that trades/withdrawal requests and closure of trading accounts shall be made the latest by 17th of August 2018.
Due to the immediate actions that need to be undertaken by our Regulator, the Company will ensure that closure of open trades/accounts, as well as withdrawal requests will be dealt with immediately.
It shall be clarified that the Company is fully aware of the legal requirements and obligations in relation to the renouncement of its license and will proceed with all the necessary actions that are required to be taken.
Please do not hesitate to contact us further for additional clarifications and/or further information in relation to the above, directly (phone: +357 25030246) or (e-mail: clientservicescicy@capitalindex.com). 
Once confirmed by a separate decision to be announced later, Capital Index will be no longer licensed and regulated by CySEC and thus cannot provide financial or ancillary services. The regulator will give the broker three months from that date to settle its obligations arising from the investment services that will be lapsed, during which time it remains under the Cypriot watchdog’s supervision.
Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, Capital Index must provide a confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients.