Francesc Riverola,
Hi everyone
The worst of my fears has happened, that was to misinform you guys and I want to apologize.
Last week I initially informed that FINMA had taken a decision on Crown Forex investigation but was not effective yet as the company had a 30 days period to opposite.
A few days later, I was informed that the decision taken was liquidation. I double checked the information and seemed 100% correct but it was not.
Under Crown Forex S.A request, I had the opportunity to have a conversation with a FINMA’s representative that is very close to the investigation.
Such representative confirmed me that the decision had indeed been taken. He also corroborates that the company has indeed 30 days to opposite: if the company do not opposite, the decision will be enforced around March 23rd and if they opposite, then the issue will go to court and would take longer.
But when I asked him if it was correct to say at this time that the decision was liquidation, he said it is not correct as FINMA can not disclose its decision at this time…. but the decision could be liquidation? Yes, he said, but they can NOT confirm it and they will NOT confirm it at this time.
I asked the representative what will happen if the worse case scenario happened and it was a liquidation. The answer was that FINMA would run and supervise the procedure and make a call of creditors. Investors would get all their money back if the company had enough assets to grant it.
I also asked the representative if it was true that Crown Forex S.A was able to get new clients while the investigation was in place. He said that it was NOT possible for the company to get new clients, but it was possible that existing clients would transfer new funds to their accounts to trade. Upon FINMA’s view, that is a decision up on clients.
Again, I’m truly sorry… I’m just trying to help and I just messed things up. I want to extend my apologies to Crown Forex S.A for not releasing a news that was true… at least at this time it is not true, that does not mean that it could be true in a few week from now.
I contacted Mr. Swaiss, CEO at Crown Forex S.A to know if the company has enough assets to grant clients to recover all their deposits. He answered: “Crown Forex have more than enough assets to cover clients liabilities further more Crown shareholders are ready to pump CHF 10Mil into the company as capital when the current situation subsides.”
I also welcoming Crown Forex S.A. to make any statement they wish regarding the misinformation published here.
Thanks
Francesc
Hello, I just went on Crown Forex chat to inquire about opening a new account (for a friend, I am with ACM)and this is what they replied, there seems to be a missunderstanding somewhere:
Call accepted by operator CROWN_FOREX. Currently in room: CROWN_FOREX.
CROWN_FOREX:
Welcome to Crown Forex Live Chat.
Can you please tell me how did you hear about Crown Forex?
mil:
Hello, i don’t have an account. I was thinking of going with you but I have just been informed that you no longer accept new accounts…is this correct?
CROWN_FOREX:
No, we accept new accounts.
CROWN_FOREX:
But you can not withdraw until the end of March.
mil:
oh, ok. i only ask because my friend sent me copie of a forum from FXStreet that says you no longer accept new accounts, only top up of existing ones.
CROWN_FOREX:
We accept new accounts normally.
mil:
if what you say is true, you should contact and tell the FXStreet, or you will lose ne clients!
CROWN_FOREX:
I will forward this conversation to the responsible person.
mil:
Yes, please do, I would like to see them correct this mistake, and hear an official answer from Crown before I go any further.
CROWN_FOREX:
Okay sir.
mil:
Bye!
CROWN_FOREX:
Please do not hesitate to contact us for further help or inquiries.
Have a wonderful evening.
CROWN_FOREX:
Goodbye.
Dear Milena
The FINMA’s representative told me that CF can not accept new accounts. His English was not really good - well it was worse than mine
- so I asked him twice just to make sure that no misunderstanding was made.
He told me that FINMA was forbidding CF to open new accounts but they can not forbid existing clients to add funds to their existing accounts as this was up to the client.
Hello again Francesc, I had to get back to Crown Forex and have them clarify this situation. As you can see they are now agreeing about the “no new accounts” policy, but they claim it has nothing to do with FINMA, that it is an internal decission. As you can see they were pretty abrupt and ended the chat imediately.
I really have tried to put my friend off opening with them, I know from my broker ACM that brokers here in Switzerland have to have a banking license, and that to have one they also need to have CHF 20 million net capital soon. I just found a link http://www.zefix.ch where it shows that Crown Forex only have CHF 4,521,500!!! And if, as you said, they have to repay their clients, they will never have the CHF 20 million required, even if you add the so called CHF 10 million that apparently the shareholders are ready to put in, it will still leave them short.
So it would seem they will more or less find it impossible to stay in Switzerland, they will probably run off to Malta (Cyprus is becoming stricter than Malta apparently) as you reported Swiss based Realtime Forex is also doing. Only 3 brokers have the required amount, MIG, Dukascopy (carefull, their 20 million is NOT pure cash so to speak, it is the nominal value of their platform technology, zefix.ch again, and so I am not sure if it will be accepted at the end or not) and of course ACM.
Ok I am ranting, here is a copy again of the chat, bye the way it seems they think you are the competition! Funny how I was asked to contact their accountant and not a manager …hmmmmm
Call accepted by operator CROWN–FOREX. Currently in room: CROWN–FOREX.
CROWN–FOREX:
Welcome to Crown Forex Live Chat.
Can you please tell me how did you hear about Crown Forex?
Mil:
hello again, we chatted yesterday.
CROWN–FOREX:
Hello.
CROWN–FOREX:
How may I help you?
Mil:
I asked you about the possibilities of opening a new account after I had read a post on FXStreet, you said I could
Mil:
I contacted FXStreet and told them that they were wrong to claim that FINMA was not allowing this
Mil:
they got back to me with this response…
CROWN–FOREX:
Yes, please go ahead.
Mil:
The FINMA’s representative told me that CF can not accept new accounts. His English was not really good - well it was worse than mine - so I asked him twice just to make sure that no misunderstanding was made.
He told me that FINMA was forbidding CF to open new accounts but they can not forbid existing clients to add funds to their existing accounts as this was up to the client.
Mil:
Please tell me what the real facts are.
CROWN–FOREX:
You can send to accountant@crownforex.com for details regarding FINMA decision, but as far as for FINMA decision, there is no final decision taken yet.
CROWN–FOREX:
But the related department today has informed us that new accounts will not be opened and the process of opening new accounts is suspended for few days as a management decision.
CROWN–FOREX:
It was confirmed only today, and it is not related to FINMA review.
CROWN–FOREX:
Regarding your source, some parties and competition may take advantage of circumstances of other companies to manipulated facts and turn it into bad rumors.
Mil:
yes I understand that fact as well
CROWN–FOREX:
It is a management decision that is decided today not to open new accounts at this time.
CROWN–FOREX:
You can send to accountant@crownforex.com for further details on this matter.
CROWN–FOREX:
I do not have all details.
CROWN–FOREX:
Our department only provides general help and inquiries to clients.
CROWN–FOREX has left the conversation. Currently in room: Mil.
Thanks for keeping me posted Milena