WikiFX report: Coverdeal FX operator no longer member of Cyprus Investors Compensation Fund

The Cyprus Securities and Exchange Commission (CySEC) today confirms that the Investors Compensation Fund (ICF) has withdrawn the ICF membership of Coverdeal Holdings Ltd, operator of brands such as Coverdeal FX.

It is noted that, in accordance with paragraph 6(3) of the Directive, the loss of ICF membership status does not mean loss of rights of covered clients to receive compensation in relation to investment operations carried out until the loss of membership status, if the conditions for compensation are fulfilled pursuant to the Directive, nor does it obstruct the initiation of the compensation procedure for covered clients.

The withdrawal of the ICF membership was announced shortly after CySECs decision to withdraw the Cyprus Investment Firm (CIF) authorisation of Coverdeal Holdings Ltd.

Lets note that Coverdeal Holdings operates a raft of online trading brands, such as Coverdeal FX and Globtrex. The list of domains the company operates includes:

www.coverdealfx.eu; www.coverdealfx.cz; www.coverdealfx.pl; www.coverdealfx.sk; www.globtrex.com; www.coverdealfx.com; www.coverdeal.eu; www.globtrex.co.za

Most of the above-mentioned websites are no longer active. Others are still up and running but show the following announcement:

Notification of Measures Related to the Termination

We would like to inform you that Coverdeal Holdings Ltd. (the “Company”) has decided to terminate its activities by requesting the renouncement of its license number 231/14 as a Cyprus Investment Firm.

Therefore, the Company does not accept any new clients, and any existing clients will not be able to trade in their account, or to enter any positions unrelated to the closing/termination of their open positions.

We kindly ask you to close/liquidate all open positions and withdraw any available balance on your account by 15/11/2020 at 18:00 GMT+3. The withdrawal of your funds will be processed in accordance with your valid documents.

Please note that if your documentation is not sufficient, you will be contacted by the Company in order to provide us with the necessary documentation to successfully complete this process.

If you do not withdraw your funds by 15/11/2020 at 18:00 GMT+3, the Company will transfer your funds to the Investor Compensation fund of the Cyprus Securities and Exchange Commission (CySEC) which can be claimed in due course.