Cyprus Securities and Exchange Commission (CySEC)

cyprus security exchange commissionThe Cyprus Securities and Exchange Commission or simply CySEC was founded to supervise the brokers’ activities on the financial markets including FX market. As a public corporate authority CySEC was established on Cyprus in 2001 and is one of the most significant broker regulation organizations for off-shore brokerage firms nowadays. The explanation for this is simple – after Cyprus entered the European Union membership in 2004, CySEC became part of the authority called Markets in Financial Instruments Directive (European MIFID). Such membership has automatically granted Cypriot Forex related firms the access to European financial markets. Thus, a good number of foreign firms started registering in Cyprus to get some promising advantages of this regulatory regimen. As for today, almost all reputable Europe based and many overseas Forex companies are acting under the regulation of CySEC.

Administration of CySEC consists of a five member Board. It includes the Chairman, the Vice-Chairman and three additional members. Registration of new financial subjects takes place during the CySEC Board's meeting with presence of the Central Bank Governor who usually participates in the discussions but has no right to vote.

CySEC Board members are assigned by the Council of Ministers for a term of five years (except the Vice-Chairman who is assigned for a term of four years). All members’ service is renewable for 5 additional years. For further up-to-date information on the CySEC Board members view Cyprus Securities and Exchange Commission Organization Structure available on their website.

CySEC Responsibilities:

  • Supervision and control of the Stock Exchange operations and transactions.
  • Supervision and control of the security issuers which are listed on the Stock Exchange, the Licensed Investment Services Companies as well as the Collective Investment Schemes.
  • Fulfilling the inspections over parties, whose securities are listed on the Stock Exchange, over broker houses and firms, investment services and mutual fund management companies.
  • Collecting and requesting information essential for the exercise of its responsibilities, to demand in writing the provision of information from all natural or legal persons or organizations that are considered to be in a position to provide such information.

View The Cyprus Securities and Exchange Commission Responsibilities for the full list of the CySEC responsibilities and duties.

CySEC Brief Summary

CySEC regulated brokers and other investment institutions are definitely legal and decent firms which guarantee their customers some sort of financial safety. Dealing with CySEC regulated body means you are dealing with professional and experienced broker partner. It is important to mention that CySEC regularly receives complaints from brokers’ customers, and if these complaints are in violation of the CySEC policy, the broker could lose its license and a customer would surely receive his compensation.

CySEC website: www.cysec.gov.cy

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