CySEC Withdraws Notice on Soliciting Non EU Clients for CIFs

In a surprise move, the Cypriot financial regulator has issued a notice about the way regulated firms market and solicit non EU clients. The regulators earlier claim has been revoked that outlawed firms to deal with Non EU clients.
3 Comments

tornpaperexampleThe Cyprus Securities and Exchange Commission (CySEC) has announced today that Cyprus Investment Firms (CIF) are not required to implement rulings on solicitation of overseas or third country (Non EU) clients according to an earlier circular released in July 2013.

The move comes on the back of lobbying by industry practitioners including the Association of Cyprus International Investment Firms (ACIIF), an organisation that intermediates dialogue between firms and regulators on the nation’s island.

untitled2

Demetra Kalogerou

Cyprus has developed into becoming a financial centre bridging Asia and the Middle East to mainland Europe. The nation of 1.1 million is part of the EU thus allowing businesses access to strong regulatory proceedings as well as a sound infrastructure to carry out business.

Circular No: CI144-2013-24 was issued today by Demetra Kalogerou, Chairwoman of the Cyprus Securities and Exchange Commission. The English translation states: The European Directive 2004/39/EC on markets in financial instruments does not regulate the provision/performance of investment services/activities in third countries. The issue constitutes discretion of each member state.

A total of five points were mentioned, with the most significant being: “The current circular replaces the circulars of the Commission with numbers CI144-2013-22 and CI144-2013-22A in relation to the above subject, which have been recalled.”

Costas for internet use

Costas Constantinides

Costas Constantinides, Director of 360 Consulting, a Cyprus based consultancy, said in a comment to Forex Magnates: “We strongly believe, that this is not a particularly unexpected nor isolated miracle of any rescuer from the situation, but a normal outcome of a process of views and communication- exchange between the market participants and the regulator as to what defeats the purpose of existence of the brokers versus what is acceptable policy for both the existence & compliance of the brokers.

The present possibly ‘softer’ circular language does not mean that any law(s) are presently disregarded, but on the contrary that “time & operating space” are granted to brokers to attend to the matter satisfactorily.

The fact that CySEC has revoked the circular shows that they are serious about addressing legal and compliance issues. As a member of MiFID the main issues raised in the initial circular are matters that can be dealt with on a wide scale in Europe.

“I am happy to see CySEC maintain a pragmatic and business friendly approach whilst a very strong signal is being sent out about CySEC’s commitment to the sector.” said Dr. Stelios Platis, Chair Person of the Association of Cyprus International Investment Firms in a telephone interview.

Untitled

Asif Rafique

Over the last five years CySEC has carried out several audits of firms and has gone a far as issuing fines and censures for firms that do not adhere to the regulators compliance guidelines.

Asif Rafique, a Dubai based introducing broker for several brokers, including two Cyprus based firms, welcomes the decision, and said in a comment to Forex Magnates: “Cyprus is an excellent location for my clients do business in, as it follows all the MiFID rules but is only a couple of hours away. The brokers have done well to compete with the London and Wall Street brokers and all we need is a stable platform, low spreads and a timely withdrawal.”

dr-stelios-platis

Dr. Stelios Platis

Major European brokers such as Alpari and Saxo Bank set up operations in Cyprus to address different needs of their corporate strategy. There are a total of 140 registered financial services firms in the country.

CySEC, the main financial watchdog has been evolving its operations and viewpoint with regards to derivatives products. The regulator was the first to endorse binary options and maintains a strong position on compliance related matters for financial services firms.







TAGS: , , , , , , , ,
 

Related posts:

More information on this subject is found in the latest Forex Magnates Quarterly Report


3 Comments on this post

Trackbacks

  1. John Hudson said:

    it was not a surprise move. everyone expected that they will withdraw it except you Adil

    August 23rd, 2013 at 9:10 pm
  2. Brian Johnson said:

    The other points also appeared significant and perhaps worth mentioning, specifically points 2 & 3:

    2. The Commission allows the provision/performance of investment services/activities
    in third countries and approves such requests made by CIFs, pursuant to section
    79(4) of the Investment Services and Activities and Regulated Markets Law (‘the
    Law’).

    3. CIFs are obliged to verify that the provision/performance of investment
    services/activities is permitted by the legislative framework of a third country.
    Therefore, CIFs must ensure/verify that they are acting lawfully within the territories
    of a third country, when they receive an approval by the Commission to
    provide/perform investment services/activities in that third country.

    So this legislative framework verification and approval by the Commission must be done on a country-by-country basis for all non-EU countries for each CIF.

    Sounds like CySEC just increased its fee revenue potential several times over..

    August 23rd, 2013 at 9:28 pm
  3. Michael Greenberg said:

    i didn’t

    September 24th, 2013 at 3:22 pm

We do not store your information and we do not disclose our sources.


Leave your name/email (not required) if you'd like to be contacted about this story (will not be disclosed):



Digital Currencies

Expert Articles

Fintech, Startups & New Products

Bitcoin Picks: OpenBazaar to Launch Beta, Banco Santander to Devise Bitcoin Strategy

With Bitcoin prices stabilizing around $500 in the final week of August, news about the digital currency this week include Santander devising a Bitcoin Strategy...

University of Zurich students launch CoinBlesk, a bitcoin payment mobile app

Students from the University of Zurich have launched a bitcoin payment mobile app called CoinBlesk. The open source app allows for the instant transfer of...

Huobi’s bitVC launches “Fixed-term Financial Products” backed by mining activities

Huobi’s bitVC has launched “Fixed Term Financial Products” called “digVC” with a duration of 60 days. Also termed “The World’s First Hashing Power Mortgage”, 2000 subscriptions...

More Digital Currencies

date

First Client Meeting… Like A First Date?!

Upon starting a new job, we are very excited. We try to impress our others by speaking and acting in just the right way. But...

Juan Colon, Darwinex

Advantages And Disadvantages Of Copy Trading

Traders can collaborate with peers with the same interests, exchanging mutually beneficial trading related information. One such approach is fx copy trading, whereby “Leaders” publish...

Coffee cup and coffee beans on old wooden background

Coffee Futures: Break or a Fake?

Coffee futures can be one of the more volatile commodities around, especially during different seasons where drought concerns or frost concerns in Brazil can really...

More Expert Articles

invstr ios app

Invstr – Making Financial Trading Social One App Download at a Time

Launching recently is social finance app Invstr. The app oofers a gamified version of trading to help users sharpen their investment skills, learn about the market, and communicate with other traders.
Read more

FxPro Launches New In-House Developed Web Trader for MT4 Customers

Expanding its list of in-house developed technologies, FxPro has launched a new webtrader to clients. The trading platform replaces their previous version which was licensed from a 3rd party provider.
Read more

More Fintech, Startups & New Products

Forex Research

Recent Comments

Note: Copyright © 2014 Forex Magnates. All rights reserved.

All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Forex Magnates. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at Forex Magnates are those of the individual authors and do not necessarily represent the opinion of Forex Magnates or its management. Forex Magnates has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Forex Magnates, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Forex Magnates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2014 "Forex Magnates Inc. - Home of the Forex Elite" All Rights Reserved.