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The AMF informs the public of the partial suspension by the CySEC of VPR Safe Financial Group Limited’s authorisation to operate in France

AI Analysis

Executive Summary

The AMF publication notifies the public of CySEC's August 3, 2022, decision to partially suspend VPR Safe Financial Group Limited's (operating as Alvexo) authorization to provide investment services in France, prompted by AMF findings of regulatory violations including misleading marketing, inadequate client suitability assessments, and poor tied agent oversight. This cross-border enforcement highlights escalating EU supervisory cooperation under MiFID II, serving as a warning for firms using tied agents in France. It matters for compliance as it underscores risks of AMF referrals leading to home-state suspensions, with subsequent developments including suspension revocation and full license withdrawal by September 2025. #

What Changed

This is an enforcement action rather than new rules, imposing specific prohibitions on VPR Safe Financial Group Limited in France: - Ban on accepting new French clients or entering business relationships with them. - Prohibition on advertising or marketing investment services to current or potential French clients, directly or via tied agent France Safe Media. - Restriction on receiving new deposits from existing French clients, except to cover initial margins for open positions upon explicit client request. These stem from suspected breaches of Cyprus' Investment Services and Activities and Regulated Markets Law 2017 (e.g., Article 22(1) and organizational requirements under Article 17(2)), including unfair marketing, lack of client suitability checks, and failure to monitor tied agents.

What You Need To Do

  • For VPR/Alvexo (during suspension)
  • Ongoing for similar firms
  • Client protection

Key Dates

August 3, 2022 - CySEC issues partial suspension decision based on AMF findings, effective immediately for French operations.
~October 4, 2022 - Two-month deadline for VPR to remediate compliance issues (from suspension date). DEADLINE
Post-August 22, 2022 (exact date unspecified) - CySEC revokes partial suspension after demonstrated compliance. DEADLINE
September 29, 2025 - CySEC fully withdraws VPR's CIF authorization pursuant to the firm's renunciation.
October 13, 2025 - CySEC publicly announces license withdrawal.

Compliance Impact

Urgency: Low (as of January 2026). The 2022 suspension is historical, resolved via revocation and superseded by full license withdrawal in 2025, posing no ongoing restrictions. It matters as a precedent for AMF-CySEC coordination on retail misconduct (e.g., CFD marketing, tied agents), urging firms to prioritize MiFID II conduct rules to avoid similar escalations; prior €100,000 CySEC fine in 2021

Who is Affected

PrimarySecondaryregulated investment firms (CIFs) operating in France via tied agents or cross-border services, especially FX/CFD brokers with retail exposure.BroaderSupervisorssharing.

Summary

Investment services Savings protection Europe & international Retail investors Investment services providers The AMF informs the public of the partial suspension by the CySEC of VPR Safe Financial Group Limited’s authorisation to operate in France

Relevant Firm Types

Broker DealerFintech
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