Complaints by Hungarian customers against a Cyprus investment firm

Budapest, 17 September, 2015 – A number of indications have been given recently to the MNB’s customer service against Cyprus-based IronFx Global Ltd, claiming that the firm, a provider of a platform for online trading, has not been executing payment orders, leaving customers without access to their funds. The MNB immediately notified the Cypriot supervisory authority.

Since March this year, the Magyar Nemzeti Bank (MNB) has received nearly 75 indications from customers, reporting that Cyprus-based IronFx Global Ltd has not been making any payment despite orders by customers, i.e. investors cannot have access to their funds despite having been required to do so. Responding to customers’ comments IronFx has referred to an ongoing internal audit and has informed that it has suspended the execution of payment orders until completion of the process.

Considering that the supervision of foreign entities providing cross-border services to Hungary does not fall within the competence of the MNB, the Bank immediately notified the competent financial supervisory authority of the firm’s home country (The Cyprus Securities and Exchange Commission, CySEC).

On the 6th August the Cyprus Securities and Exchange Commission announced (www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=c5b69085-0611-4a66-b15c-af61bcfb3af0) the following:

“As a consequence of media reports and the increasing number of complaints submitted by investors against the Cyprus Investment Firm IronFX Global Ltd, the Cyprus Securities and Exchange Commission wishes to clarify that there is an ongoing investigation against the CIF with respect to possible infringements of the Legislation. Upon completion of the investigation, the CySEC will publish its findings and/or will proceed with further announcements in the meantime, if deemed necessary.