CySEC Revokes UFX Broker Licence as Reliantco Halts Global Operations

The Cyprus Securities and Exchange Commission (CySEC) has officially withdrawn the Cyprus Investment Firm (CIF) licence of Reliantco Investment Limited, the operator of UFX.com. This decision followed a six-month period during which the company failed to provide any investment services or perform investment activities. The regulatory action effectively marks the end of UFXs operations as a retail broker offering forex and contract for difference (CFD) services.

The revocation decision was finalised during CySEC's meeting on 30 October 2024. According to the regulator, Reliantco had ceased all investment-related activities, leading to its disqualification under CySEC‘s operational requirements. This development aligns with earlier indications of the firm’s downturn. As early as last year, UFX's official website displayed a notice stating that the company no longer offered investment services in multiple jurisdictions.

Reliantco had been licensed by CySEC since 2010, initially leveraging its Cypriot registration to operate across the European Economic Area through passporting rights. Additionally, the firm expanded its reach beyond Europe, providing services in regions such as Asia and Latin America under a licence from the Vanuatu Financial Services Commission. However, operations under both Cypriot and Vanuatu licences have since ceased, effectively ending Reliantcos global footprint.

The broker had already begun winding down its activities prior to CySEC's action. Early last year, it blocked users from opening new accounts and voluntarily renounced its CIF licence. CySEC records reveal that the regulator had been reviewing the companys voluntary licence surrender prior to the final withdrawal announcement. Reliantco also managed several other domains, including ufxaffiliates.com, ufxpartners.com, and ufx.company, which are now presumed inactive.

In previous statements to industry media, representatives from Reliantco disclosed that the company had stopped onboarding new clients several years ago. Its cessation of active marketing and client acquisition since 2018 rendered the CIF licence unnecessary, according to these disclosures. Despite this, the companys operational history includes instances of regulatory scrutiny. In 2013, CySEC imposed a €100,000 settlement on Reliantco for undisclosed violations but later rescinded the public announcement of the penalty.

UFX‘s challenges extended beyond compliance concerns. CySEC reportedly flagged the broker's rapid growth in revenue compared to its staffing levels, prompting the regulator to demand an expansion of Reliantco’s financial team, particularly at its Cyprus headquarters. This growth-versus-resources imbalance highlighted operational inefficiencies that may have contributed to the brokers decline.