CySEC could compensate Falcon clients with up to €20,000

By Stelios Orphanides

Falcon Brokers Ltd, the investment company which had its licence revoked by the Cyprus Securities and Exchange Commission, needs to settle its outstanding obligations, including those towards its customers, a CySEC source said.

In case the company fails to satisfy the claims of customers eligible for compensation after the three-month period expires, the investor compensation fund could kick in with up to €20,000 per eligible customer, the source said.

“Only non-professional customers are eligible to benefit from the scheme,” the source said.

CySEC withdrew Falcon’s licence which over its lack of compliance with the provisions of legislation governing organisational requirements and customer capital.

On April 19, the Limassol-based company was also ordered by CySEC to remove references on its website to the 128/10 licence issued by the supervisor, which Falcon has failed to do so far.

An independent committee consisting of an auditor and a lawyer will examine whether claims submitted by customers are valid and whether compensation can be paid-out, the source said.

“So far, we have not received any complaints,” the source added.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.