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Cyprus’ financial regulator has suspended the voting rights of the sole shareholder of Lydya Financial Ltd. and banned him from carrying out management duties, saying his influence over the company poses a risk to its proper operation.
In a decision taken during a March 9 board meeting, the Cyprus Securities and Exchange Commission said it had determined that the influence exercised by David Masika was “prejudicial to the sound and prudent management” of the Cyprus Investment Firm.
CySEC said the measures were imposed with immediate effect under Article 11(3) of Cyprus’ Investment Services and Activities and Regulated Markets Law.
The regulator announced two sanctions against Masika, who is the sole shareholder and ultimate beneficial owner of the company.
First, all voting rights linked to his shares were suspended. Since Masika owns 100% of the company’s share capital, the move effectively freezes shareholder control over the firm.
Second, CySEC barred him from exercising any management duties on the company’s board of directors.
No detailed public explanation was given regarding the exact concerns that triggered the action.
Lydya Financial Ltd. has held a Cyprus investment firm license since 2016 and operates the CFD brokerage platform: https://lydyafinancial.com?utm.
The case follows a pattern of similar interventions by CySEC in recent years, where the regulator has used the same legal mechanism against shareholders or executives it considered a potential risk to the stability or governance of licensed investment firms.
The watchdog has increasingly faced pressure in recent years to tighten oversight of Cyprus-based financial companies, particularly those operating in the online trading and CFD sector, which has long been under scrutiny across Europe over investor protection concerns.
