Arumpro Capital Ltd Faces Regulatory Setbacks as CySEC Withdraws CIF Licence

In a significant regulatory development, the Cyprus Securities and Exchange Commission (CySEC) has officially withdrawn the Cyprus Investment Firm (CIF) licence of Arumpro Capital Ltd. The decision was finalised during a CySEC meeting on 11 November 2024, marking another chapter in the firm's ongoing regulatory challenges.

The withdrawal of the licence is in accordance with section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017, as well as section 4(7) of the Directive DI87-05. According to CySEC, the firm voluntarily renounced its authorisation, prompting the regulatory body to act in compliance with established legal procedures.

This announcement comes nearly three years after Arumpro Capital Ltd faced scrutiny in the United Kingdom. In January 2022, the Financial Conduct Authority (FCA) revoked the firm‘s Part 4A permission, effectively prohibiting it from conducting regulated activities in the UK. The FCA’s decision followed Arumpros failure to address multiple requests for essential information, particularly those outlined in the Temporary Permissions Regime (TPR) Attestation Survey.

The FCA‘s investigation revealed critical shortcomings in Arumpro’s operations. The firm was found to be in breach of the suitability and effective supervision Threshold Conditions. The UK regulator concluded that Arumpro did not meet the criteria to be considered “fit and proper” and lacked the necessary framework for effective supervision. These findings raised serious concerns about the firm's ability to maintain the standards required of entities operating in regulated markets.

The renouncement of its CIF licence by Arumpro further underscores its regulatory struggles. Voluntary licence withdrawals are not uncommon in cases where firms face mounting compliance pressures or operational challenges that hinder their ability to adhere to regulatory requirements. By surrendering its authorisation, Arumpro has effectively ceased its operations as a regulated entity in Cyprus, a jurisdiction known for its stringent oversight of financial services providers.