Breaking: CySec Freezes UK Residents’ Accounts Due to Brexit

CySec appears to have given guidance that all CySec registered brokers in Cyprus that they need to close margin and trading accounts from residents within the UK. The decision is based on UK residents having lost their passporting rights to offer their services into the UK due to Brexit, Finance Magnates has learned.
This seems to follow a move by the British regulator FCA having flagged Cyprus based brokers on its online register as brokers that have lost their passporting rights into the UK due to the UK leaving the EU with Brexit on January 31st 2020.
Given that a broker has a dual license in both countries they have been urged to internally transfer these accounts into the UK to be captured under their FCA licensed legal entity as soon as possible.
Finance Magnates has furthermore learned that as of today, CySec regulated firms are either returning cash and/or freezing accounts that have account holders in the UK with most brokerage companies having issued internal guidelines to have this transition completed by the end of this week.
Companies affected
In the first wave of executing these guidelines various firms appear to have set an internal deadlines by COB (close of business) today and/or the end of this week.
The companies affected are Magnum FX, F1 Markets Ltd, Hoch Capital and Roedeler Limited.
All firms mentioned above have not issued any official comments on the matter. The saga continues…
A source in the market said that this transition obviously has been on the horizon, even though the fire-drill that this has seemed to have turned into appears to be rather surprising.
“Usually Cysec is very anxious to be fully synchronised with the larger regulators in the Bloc-27 whereas this time due to Brexit this line of communication seems to have broken down,” the source stated.