CySEC orders Ayers Alliance Financial Group to stop certain activities

The Cyprus Securities and Exchange Commission (CySEC) today announced the imposition of a sanction on Cyprus investment firm Ayers Alliance Financial Group Limited.

The Board of CySEC has established a violation by CIF Ayers Alliance Financial Group Limited of Article 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017, due to the company’s non-compliance with the authorisation condition set in Article 17(8) of the Law at all times, as specified in paragraph 5(2) of the CySEC Directive DI87-01 for the Safeguarding of Client Assets, Product Governance Obligations and Inducements, concerning the deposit of clients’ financial instruments with a third party.

CySEC decided, pursuant to its power provided in Article 71(6)(b) of the Law, to order the company to cease, within six months, the conduct of cooperating, for the deposit of its clients’ financial instruments:

• with third parties who are not established in a jurisdiction where the safekeeping of financial instruments for the account of another person is subject to specific regulation and supervision, and
• in countries of establishment where specific regulation and supervision applies, with third parties which are not subject to the specific regulation and supervision.

In April 2022, CySEC announced that it had established that Ayers Alliance Financial Group Limited had violated the Cypriot investment law. Back then, the regulator ordered the company to cease the practice of using personnel without the skills, knowledge and expertise required for the performance of the responsibilities of the head of the Risk Management Department.

Ayers Alliance Financial Group Ltd, previously known as Harborx Ltd, is currently under examination for voluntary renunciation of the CIF authorisation.