Our financial litigation lawyers keep an eye on the activities of various brokers. This month, we learned that the broker Alvexo had to suspend its activities in France following the announcement of CySEC. Today, in this article, we will explain who is this broker and why CySEC announced the suspension of its activities in France.
I / Who is Alvexo?
Alvexo is an online trading and investment platform. You have the possibility to invest in different assets such as currencies, indices, commodities, shares and crypto-currencies.
Note that Alvexo is a sub-domain, i.e. a brand name for the Cypriot company VPR Safe Financial Group Limited. The latter is supervised and regulated by CySEC since 03 June 2014 with the license number 236/14.
CySEC is the financial regulatory agency of Cyprus. Also, CySEC’s operations are subject to the European financial harmonisation law MiFID, hence CySEC took the decision to suspend activities in France for Alvexo. We will explain the reasons later in the article.
As you can see on the CySEC website, the company is partially suspended.
On the Alvexo website, it is also stated that the company has been suspended in France, but the company does not explain this decision. That is why our expert lawyers found the reason for this suspension for you.
II / Why should Alvexo (VPR Safe Financial Group Limited) suspend its activities in France?
CySEC announced that the authorisation of the Cypriot investment firm VPR Safe Financial Group Limited, under licence number 236/14, was partially suspended.
CySEC has raised various suspicions about Alvexo’s activity towards clients. This may be due to clients complaints against the company, or an in-depth investigationof the company by public bodies such as CySEC.
CySEC presumes that Alvexo has used this France Safe Media tied agent to act on its behalf in France. As a result, it appears that the company is not acting honestly, fairly and professionally when providing investment services to clients. Also, according to the CySEC document, VPR Safe Financial Group Limited and by extension France Safe Media do not appear to ensure that all information, including marketing communications, which it addresses to clients are in compliance with the applicable legislation, i.e. fair, clear and not misleading.
Furthermore, it appears that the company and the tied agent provided investment advice and information to customers without taking into account whether he had the necessary skills to trade on their site. In short, they do not know whether the product or service offered is suitable for each client.
Finally, Cysec assumes in its document that VPR Safe Financial Group Limited does not appear to be monitoring the activities of its tied agent to ensure ongoing compliance with the law.
III / What is the impact of the suspension on the Cypriot company Alvexo (VPR Safe Financial Group Limited)?
As a result of its assumptions, VPR Safe Financial Group Limited is prohibited from
to provide, carry out investment services/activities on French territory including through its tied agent. This implies a ban on accepting new clients on French territory and entering into business relations with them, which is why the following statement appears on the Alvexo website:
“The provision of our services and opening of accounts to new clients from France is temporarily partially suspended.” Source: https://www.alvexo.eu/
VPR Safe Financial Group Limited (Alvexo) is also prohibited from advertising as an investment services provider in France. As a result, Alvexo is prohibited from communicating with potential French clients and the tied agent France Safe Media.
This decision was reached on the basis of findings communicated to Alvexo by the competent supervisory authority in France, the Autorité des marchés financiers (AMF).
All of this information is available in the CySEC document which can be found here.
In conclusion, Alvexo (VPR Safe Financial Group Limited) must take the necessary steps within two months to comply with the provisions set out in the article. However, for as long as the suspension is in force, the company can still complete all its own transactions and those of its French clients which are before it. It can also return all financial funds that are attributable to its clients. As expert lawyers in the field of trading, we recommend that you shall pay attention to the existing brokers and always check the information with verified bodies such as CySEC or AMF.