The Cyprus Securities and Exchange Commission , (Greek: ???????????????????? ) better known as CySEC , is Cyprus's financial regulatory body. As a member country of the European Union, CySEC financial rules and operations comply with the MiFID European financial harmonization laws. In particular a large number of foreign retail forex brokers and binary option brokers have obtained registration from CySEC.
Video Cyprus Securities and Exchange Commission
History
CySEC was launched in 2001 as part of section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibility) Act 2001 as a public legal entity. When Cyprus became a member of the European Union in 2004, CySEC simultaneously became part of the European MiFID regulation, giving Cyprus registered companies access to all European markets. However, joining the EU and adopting the Euro significantly changed the CySEC-supervised financial regulatory framework for what was previously considered a tax haven.
On May 4, 2012, CySEC announced a policy change regarding the classification of binary options as a financial instrument. The impact is that the binary option platform operating in Cyprus (where most platforms are based) must be set. This sets CySEC as the first financial regulator to globally recognize and manage binary options as a financial instrument.
Maps Cyprus Securities and Exchange Commission
Responsibility
CySEC has the following responsibilities:
- To supervise and control the operations of the Cyprus Stock Exchange and transactions conducted at the Stock Exchange, listed companies, brokers and brokerage firms.
- To supervise and control Licensed Investment Service Firms, Collective Investment funds, investment consultants, and mutual fund management companies.
- Grant operating licenses to investment companies, including investment consultants, brokerage firms and brokers.
- To impose administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to other legal persons or individuals included in the laws of the Stock Market.
Structure
CySEC is managed by five Board members consisting of Chairman and Vice Chairman, who work full time, plus three other members. In addition, the Governor of the Central Bank of Cyprus is represented by members of the non-voting council. Council members are named by the Council of Ministers following the proposal of the Minister of Finance and their service is a five-year term.
Rules & amp; Processing
CySEC has experienced high levels of registration and pioneering registration associated with certain financial services. Thus, the monitoring and regulatory requirements for the organization are constantly under adjustment. This process has received attention from other EU regulators and CySEC enlisted Brokerage houses.
Rule
Throughout 2014 and 2015, CySEC has received criticism from industry traders and commentators who claim that the organization needs better legislation on regulation and monitoring of high-risk investment firms. They suggest that fines imposed by CySEC tend to be smaller than those provided by other EU regulatory organizations. Most of the criticisms come in connection with certain binary option brokers.
Processing
CySEC is the first financial regulator that aims to set binary options. Thus, binary option brokers, including prominent ones, are registered (or try to register) with CySEC to be able to operate legally within the Euro Zone or be trusted internationally. Some of them have requested faster processing and processing Since 2012, some unregulated brokers stated on their site that "Binary Options are the simplest way to trade the market They have been available since 2008, and are set in Europe by CySEC at May 2012. "This does not mean that the broker is regulated by CySEC. Traders should investigate for the <5 CySEC License Number and verify the CySEC website that the license is still valid.
Response
CySEC has implemented major changes to the registration and regulatory process of all registered entities. Changes include more transparency regarding existing registered entities, tighter penalties, broker suspensions, and license revocations. It has also established strict regulatory approval for name changes. In a circular in 2016, the regulator explained that "the names of regulated entities, or the use of words in their names, should reflect the work/activities they undertake, for the purpose of not misleading investors". The organization has also set up new structures to improve the handling of investor complaints.
CIF Certification
Companies that provide investment and other additional services employ individuals with relevant qualifications. In accordance with state law, employees of investment companies involved in the provision of investment services or the implementation of investment activities, shall be registered on the general list of persons certified upon passing the examination. They must also meet the requirements of the Guidelines for Investment Companies , which specify the minimum academic and professional qualifications they must hold. This law aims to arm the Investment Company with a good understanding of the local and European legal and regulatory frameworks and practices along with important understandings related to Money Laundering, Risk Management and Economics.
Certificate
- The Basic Financial Services Framework
- Advanced Financial Services Legal Framework
See also
- The Securities Commission
- European Securities and Markets Authorities
- Markets in Financial Instrument Guidelines
- Binary options
- Retail foreign exchange trading
References
External links
- Official Site
Source of the article : Wikipedia
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