CySEC Warns CFDs Brokers To 'Improve Practises' Or Face Disciplinary Action

The regulator is strengthening its industry monitoring techniques.

It is enforcing new regulations to assure compliance and consumer safety.

The Cyprus Securities and Exchange Commission (CySEC) issued a warning to Cyprus Investment Firms (CIFs), specifically CFD issuers, urging them to take urgent measures to “modify their procedures.”

Brokers with lax compliance methods would face enforcement proceedings with “much larger” penalties, according to the agency. Furthermore, the regulator has the authority to suspend or revoke the firms' operating licenses.

Cyprus is home to a number of financial services firms, most of which are brokers and other trading-industry firms. To operate in the European Economic Area, the enterprises often utilize their Cyprus license.

Despite the fact that Cyprus's welcoming laws have successfully attracted financial services businesses, numerous European authorities, notably ESMA, have pointed out compliance failures on the part of Cyprus-regulated enterprises.

About CySEC

The Cyprus Securities and Exchange Commission (CySEC) was constituted as a public legal body in line with Section 5 of the Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001. It is an independent public supervisory institution in charge of overseeing the investment services market, transferable securities transactions in the Republic of Cyprus, and the collective investment and asset management industry. It also oversees businesses that provide administrative services but are not regulated by ICPAC or the Cyprus Bar Association.

About WikiFX

WikiFX is a worldwide corporate financial information search engine. Its primary duty is to give the included foreign exchange trading organizations with basic information search, regulatory license searching, the credit assessment, platform identification, and other services.

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