A Visit to SMSG in Cyprus – No Office Found

Reason for this visit

Established in 2003, the Cyprus Securities and Exchange Commission (CySEC) is a financial services regulatory authority, overseeing financial products including securities, stocks, foreign exchange, etc., and its financial regulation and operations align with the European Union’s MiFID financial framework.

Since Cyprus joined the EU in 2004, CySEC has become an integral part of the EU’s Markets in Financial Instruments Directive (MiFID) regulations. This means that any company registered in Cyprus can freely bring its business into the entire European market. As a result, Cyprus has invisibly attracted more and more overseas companies to choose to register there. There has been a notable increase in overseas retail forex brokers who are eager to obtain CySEC regulation. Additionally, significant changes have occurred in Cyprus since it adopted the Euro in 2008. CySEC is now regarded as a reputable regulatory authority, and obtaining a CySEC license gives customers a more positive impression of a company. In brief, obtaining a CySEC license in Cyprus provides clients with a greater sense of security and protection. Furthermore, Cyprus not only has the lowest corporate tax rate among all EU member states but also aims to develop Cyprus’ stock market into the safest, most reliable, and attractive investment destination. In an attempt to provide investors with a tangible understanding of the current situation of brokers in Cyprus, WikiStock survey team is determined to go to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to Cyprus to visit broker SMSG as planned according to its regulatory address that 17 Artemidos Street, Sonic House, 2nd Floor, CY 6025, Larnaca.

The investigators came to Sonic House at 17 Artemidos Street in Larnaca of Cyprus for a visit to the broker’s office on February 22, 2024. Larnaca, a major city and port in Cyprus, is home to the Larnaca International Airport and serves as a bustling hub for tourism and commercial activities in the country.

After arrival at the place where Sonic House was located for further investigation, the survey personnel spotted surprisingly that the building was torn down due to reconstruction, and then managed to contact the company by phone for detailed information. According to the receptionist on the line, once the reconstruction was completed, SMSG would continue to operate at the address, and the company was changing its name into STATOK Limited. However, they declined to disclose the current location of their company.

Through the on-site investigation, it is confirmed that the broker doesn’t have a physical presence at the location.

Conclusion

The survey team went to Cyprus to visit broker SMSG as scheduled, but didn’t find the company at its regulatory address. This signifies that the broker doesn’t have a physical business office at the place. Accordingly, investors are advised to make a judicious decision following an overall consideration.

Disclaimer

The content is used for informational purpose only, and shall not be taken as a final order for making a choice.