A public notice published last week on the FSC’s website revealed that CityGate Securities has had its global business licence and its broker licence suspended with immediate effect.
According to the notice, the privately owned stockbroker failed to comply with legal requirements set out in the island’s Financial Services Act, including the code on the Prevention of Money Laundering and Terrorist Financing.
CityGate also failed to comply with the conditions attached to its licences.
The commission said the firm “shall cease to carry out the activities authorised under its licences”, but added that it will remain subject to the obligations of a licensee and must still follow directions from the commission until both suspensions are cancelled.
Troubled
This follows the suspension of Belvedere’s management licence in March, the liquidation of the group’s Kijani funds last month and the announcement that the Brighton SPC fund had been taken over by the Cayman Islands Monetary Authority.
An auditor also questioned the existence of assets managed by Four Elements PCC – another company registered under Belvedere – and a warning against the company was issued by the FSC last year.
CityGate’s website said the firm provides offshore brokerage services to institutional and high-net-worth private clients.
It also said its principal activities include corporate broking, institutional stockbroking, investment funds, and institutional equities.
