CySEC Imposes Administrative Penalty on Ayers Alliance's Owner

The asone foreign exchange management platformregulator initiated an investigation against Ayers Alliance last month.

The company has now renounced its CIF license.

The Cyprus Securities and Exchange Commission (CySEC) has imposed administrative fines against Tung San Tat Clement, the owner of Ayers Alliance Financial Group Ltd, as part of the regulator's actions as a result of the investigation against the company.

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Penalty against Ayers Alliance's Owner

Announced today (Tuesday), Clement has been slapped with an administrative penalty of €10,000. He also needs to pay a daily penalty of €850 for each day of continued refusal to comply with the regulations.

According to the regulator, he "did not comply with the obligation to provide timely, complete and accurate information to a request for collection of information addressed to him around May 2023 in the context of an investigation conducted by CySEC for Ayers Alliance Financial Group Ltd within the stipulated period."

Troubles with Clients' Money

Ayers Alliance Financial Group (previously Harborx Ltd.) came under CySEC's investigation last August for a potential violation of the regulations. Without highlighting any details on the action, the regulator said that the firm might face monetary penalties.

In a separate announcement, Ayers Alliance revealed that it was "facing difficulties" in paying out funds to all customers. The company has now voluntarily renounced its Cyprus Investment Firm (CIF) license, which is now under regulatory scrutiny.

"This decision has been made after carefully considering and evaluating the Company's current business operations," the company stated. "Unfortunately, due to circumstances beyond our immediate control, the Company is currently unable to continue its investment activities and has been left without any other option but to take this difficult step."

The regulatory troubles of Ayers started in April 2022 as CySEC found violations of mandatory staffing requirements for its risk management department. The regulator stopped the company from employing people who lacked the necessary skills, knowledge, and expertise for the role of Head of Risk Management.

Again, in April 2023, the Cypriot regulator imposed sanctions on the company for violating regulations concerning safeguarding client assets, precisely depositing clients' financial instruments with a third party. Its order included ceasing cooperation with the external firm responsible for maintaining client deposits within six months.

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