Saturday, December 28th, 2013 by Michael Freeman
Once again CySEC is cracking down on binary options brokers who are operating without a CIF license or violating the current regulations and reporting requirements. Unlike the latest warnings issued to Global Trader, Sycamore Options and a few other brands, this time CySEC proved it ‘means business’, suspending Cedar Finance’s CIF license until further notice.
Based on the notice given to Cedar Finance it clearly states that they are not permitted to remain ‘open for business’ and that the company website www.CedarFinance.com must remain inactive as long as the suspension is in force.
“It is provided that the Company cannot, pursuant to section 26(5) of the above mentioned Law, provide, or purport to provide – directly or via its website www.cedarfinance.com – investment and ancillary services, while the suspension of the authorisation is in force.” Nicosia, 19 December 2013 – www.cysec.gov.cy
In the statement released by CySEC it was not clear what violations Cedar Finance committed but evidently, the company was in violation of a few laws under section 26(2) – involving their investors, shareholders and ongoing obligations and in “violation of Investment services and Regulated Markets Law”.
Obviously the statement is subject to different interpretations but nonetheless, the news should be a concern for anyone who is doing business with Cedar Finance and by that I am referring to any traders, advertisers, employees and shareholders who might be affected by the company’s failure to operate within the boundaries of the law. I am assuming that even though Cedar Finance is not permitted to remain active, they will continue to offer their services to new investors. If you are considering to trade with this broker, be advised that they are operating illegally.
In an earlier article I released on Cedar Finance, I addressed the company’s aggressive marketing tactics. It’s not a coincidence that the company is now facing legal problems and might potentially lose their ability to continue operating on the long-run. Read the article on Cedar Finance new “Sharia” accounts or an Islamic account as an attempt to attract Muslim traders.
Trading with a fully regulated and licensed broker is very important. For more information on regulated brokers, visit the Binary Options Brokers reviews. OptionFair and Anyoption are examples of fully EU regulated binary options brokers.