Reason for this visit

Cyprus imprudently purchased Greek government bonds in 2012. When the Greek government bonds default occurred, the Cyprus banking system suffered heavy losses exceeding 30% of the annual GDP of Cyprus, and the countrys domestic debt crisis occurred. In response to the crisis, the Cyprus government introduced a terrible solution that was opposed by all the people, which aggravated the crisis. At the same time, some people in Cyprus discovered that having an upward trend in price, various foreign currencies that were independent of the sovereign currency might be able to cope with this crisis. As a result, people poured funds into the small foreign exchange market in an attempt to hedge and protect themselves. For various reasons, Cyprus has gradually become a country with active foreign exchange transactions. In an attempt to help investors better understand the current situation of foreign exchange brokers in Cyprus, WikiFX survey team decides 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 forex broker PU PRIME as planned according to its regulatory address that 37A Archiepiskopou Makariou III, Leontios House, Office B104, Engomi, CY2407, Nicosia, Cyprus.

The investigators came to 37A Archiepiskopou Makariou III in Nicosia, Cyprus for a visit to the brokers office, and located “Leontios House,” a 3-storey building encompassing block A and B. It could be seen that the structure looked more like an ordinary residential building with a relatively old façade than a commercial building.

Upon arrival at the building for further investigation, the survey personnel spotted mailboxes inside, without a directory in the lobby. Mailbox B104 was found not to display the company name and logo of PU PRIME. Additionally, people were not permitted to enter without an access password. Finally, the inspection team managed to reach the suite B104 and discovered some household goods, like detergent, pots and pans, at the door, which indicated that it was a residential building rather than a commercial building.

Through the on-site investigation, it is confirmed that the broker does not have a physical presence at the place.

Conclusion

The survey team went to Cyprus to visit broker PU PRIME as scheduled, but did not find the companys office at its regulatory address. Accordingly, it is suggested that investors should be meticulous in choosing the broker.

Disclaimer

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