Regulators

Cyprus Securities and Exchange Commission (CySEC)

In 2001, the Cyprus Securities and Exchange Commission CySEC was established.

Forex Regulatory Tips

According to CySEC's official website information query, the Cyprus Securities and Exchange Commission ("CySEC") regulates leveraged foreign exchange transactions.
Cyprus's definition of leveraged foreign exchange: foreign exchange transactions are neither for the purpose of actual delivery of the agreed foreign currency nor for the actual settlement of cash (foreign exchange spot transactions).
CySEC's definition of foreign exchange transactions:
(a) Not settled in cash, the client's position undergoes an expected change, such as a 'rolling spot foreign exchange contract' or;
(b) According to different exchange rates, the difference in value between the two currencies is the object of settlement, and the customer is required to pay the daily guarantee amount (margin).
The acceptance, transfer and execution of orders for certain financial instruments may be considered investment services and must only be provided by licensed CIFs (Cyprus Investment Firms).

Organization Profile

Institutional nature: The Cyprus Securities and Exchange Commission (CySEC), as an independent public supervisory body, was established under Section 5 of the Securities and Exchange Commission (Establishment and Responsibility) Act 2001 to supervise the investment services market and transferable securities in the Republic of Cyprus market place.
Institutional Vision: To establish the Cyprus Securities Market as one of the safest, most reliable and attractive investment destinations.
Institutional mission: to carry out effective supervision to ensure investor protection and healthy development of the securities market.
Regulatory functions:
(1) Examine applications and issue operating licenses to entities under their supervision, and suspend and revoke said licenses.
(2) To supervise and regulate the operation of the Cyprus Stock Exchange and other organized markets in the Republic and the transactions carried out on these markets.
(3) To supervise and regulate the institutions subject to its supervision to ensure that they comply with the laws governing their operations.
(4) Carry out all necessary investigations in accordance with the duties prescribed by law and on behalf of other foreign regulatory authorities.
(5) Request and collect information that is necessary or helpful for the exercise of legal obligations, and request a written request to provide information to any natural or legal person or organization in order to provide the required information.
(6) Implement administrative punishments and disciplinary actions prescribed by law.
(7) Demand a cessation of practices that violate securities market laws.
(8) Apply to the competent court for an order to detain, or to collect or freeze or prevent the transfer or transaction involving assets.
(9) Issue regulatory orders and decisions.
(10) Cooperation and exchange of data and information with other public authorities of the Republic, competent foreign supervisory agencies and other organizations.

Licence application

First, application requirements

Second, the application process
Step 1: Fill in the application form 144-03-01
Step 2: Calculate the required fees according to Chapter 2 of the application form
Step 3: Submit application form to Cyprus Securities and Exchange Commission
Step 4: CySEC reviews the application, or subpoenas the applicant (if necessary)
Step 5: CySEC Board of Directors decides whether to authorize
Step 6: Reply to the decision within 6 months from the date of application submission
Application form 144-03-01 link reference click here:
https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=928ce9d2-9794-4e2f-924e-f5c86d036d1b
Office address:
27, Diagorou Street, CY-1097 Nicosia
Mailing address:
P.O. BOX 24996 CY-1306 Nicosia
Third, the application period
2-6 months

Content of application form

1. Submit application company details
Including company name, transaction name, registration number and date of registration, registered office address, head office address, mailing address, contact information, website, external auditor, statutory advisor, etc.
2. The authorized services, activities and types of financial instruments applied for
2.1 Fill in the type of investment company:
(1) Traditional investment companies (such as securities firms);
(2) Contracts for Difference (CFDs)/Forex Trading;
(3) Foreign exchange transactions;
(4) Algorithmic trading;
(5) Combination type (need to be explained)
2.2 Fill in the type of investment service:
Part1: Investment Services and Activities (Part 1)
(1) Accept and transmit orders related to one or more financial instruments;
(2) Execute orders on behalf of customers;
(3) Trading own account;
(4) Portfolio management;
(5) Investment advice;
(6) Underwriting financial instruments and/or placing financial instruments based on explicit commitments;
(7) Placement of financial instruments without explicit commitment;
(8) Operation of multilateral trading facilities.
Part2: Financial Instruments (Part II)
(1) Safekeeping and management of financial instruments for client accounts, including custody and related services such as cash/collateral management;
(2) A company that provides credit or loan to an investor to enable him to transact in one or more financial instruments in which the credit or loan is involved;
(3) To provide advice on capital structure, industry strategy and related matters, as well as M&A-related consulting and services;
(4) Provide foreign exchange services related to investment services;
(5) Investment research and financial analysis or other forms of general advice related to financial instrument transactions;
(6) Services related to underwriting;
(7) Part1 and Part2 investment service activities and ancillary services related to (5), (6), (7), (10) in Part3.
Part3: Financial Instruments (Part III)
(1) Transferable securities;
(2) money market instruments;
(3) Collective investment institutions;
(4) options, futures, swaps, forward rate agreements and any derivative contracts relating to securities, currencies, interest rates or yields, or derivatives, financial indicators or financial measures that may be settled in physical or cash;

(5) Options, futures, swaps, forward rate agreements, and any derivatives transactions related to commodities, which are settled in cash, or in cash as agreed upon by the parties (except for default or termination of orders);

(6) options, futures, swaps, and other derivative contracts related to commodities, which may be physically settled, so long as the transactions are conducted in regulated markets or/and multilateral trading markets;
(7) Options, futures, swaps, forwards and other derivative contracts related to commodities not mentioned in Part 3(6). These contracts can be settled in kind, cannot be used for commercial purposes, have the characteristics of other derivative financial instruments, are cleared and settled through a recognized clearing house, or are subject to regular margin calls;
(8) Derivatives for credit risk transfer
(9) Financial CFDs
(10) Options, futures, swaps, forward rate agreements and official agreements with climate, freight, emissions allowances or inflation rates, or other cash settlements that must be in cash or a negotiated option (other than due to default or other termination events) Any other derivative contracts relating to economic statistics, and other derivative contracts not mentioned in this section relating to assets, rights, obligations, indices and measures, which have the characteristics of other derivative financial instruments, in particular, when subject to Trading in regulated or multilateral trading markets, clearing and settlement through recognized clearing houses, or subject to periodic margin calls.
3. System internal audit
4. Transaction report
5. Other activities
6. For details, please refer to CySEC official website

License Payment

Tips:
1. "Law" in CySEC's official document refers to "Investment Services and Activities and Regulated Markets Law"
2. "Part 1/2/3" can refer to the above "Application Content 2".
3. This form is based on the documents published by CySEC. The original link is as follows (in Greek): https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=80ccefe0-a712-401c-a857-6edbb3421a7e

Cost calculation

The fixed portion of the annual fee is 3,500 euros, and the variable portion is proportional to the company's turnover.
Link to the original text of the calculation form: https://www.cysec.gov.cy/en-GB/legislation/services-markets/epey/notifications-forms/47123/

License Type

License Type: CIF (Cyprus Investor)
Scope of business: It depends on the content of the application, please refer to "Content 2 of the application form" above
Entity Type:
(1) Cyprus Investment Companies (CIFs)
(2) Cyprus branch of investment companies (IFs) in other EU member states
(3) Authorized Agent of Cyprus Investment Company
(4) Underwriting of collective investment in transferable securities (UCITS)
(5) Transferable Securities Group Investment Management Company (UCITS)
(6) UCITS agent
(7) Cyprus branch of UCITS management company in other EU member states
(8) Administrative Services Company (ASP) - Trustee and Trust Service Provider
(9) Variable capital investment companies
(10) Alternative Investment Fund Managers (AIFMs)
(11) Regulated market
(12) OTC Derivatives Clearing and Trading Centers (CCPs)
(13) OTC derivatives trading
With the new law, CySEC will regulate Alternative Investment Funds (AIFs). In addition, regulatory laws on central securities depositories (CSDs) are being developed.

Regulatory Inquiries

Step 1: Go to Cyprus CySEC Regulatory Enquiry Page.
Step 2: Enter the regulatory number or the English name of the company; we take the regulatory number: 310/16 (LMAX Broker) as an example to query.
Note: If you search by the company's English name, several companies may appear. In this case, please judge according to the supervision number.
Step 3: After clicking to enter, you will see the basic information of the company (company name, address, regulatory number, license effective date, company registration number, telephone, fax, email, website, other information), investment services, auxiliary services and cross-border service scope;
If you need to confirm whether a company is regulated, you need to check the basic information such as the URL;
If you want to confirm whether the company can provide foreign exchange trading services, see whether "Investment Services (investment services) has item 9" Financial Contracts for Differences (financial CFDs) or see whether "Ancillary Services (ancillary services)" has "Foreign exchange services" where these are connected to the provision of investment services”.

Regulatory complaints

The Cyprus Securities and Exchange Commission (CySEC) has no indemnification powers and does not investigate individual complaints, but accepts them.
If investors are dissatisfied with the financial products or services provided by Cyprus Investment Corporation (CIF), they should first complain directly to the investment company; If you are not satisfied, you can appeal to the court.
1. Complaint steps
1. Contact CIF (Cyprus Investment Company) directly
(1) CIF will provide a reference number, which is required for all complaints with the Financial Complaint Body and/or CySEC.
(2) The CIF must notify the complainant in writing within 5 days that the complaint has been received.
(3) CIF needs to inform the complainant in writing of the solution to the complaint within 2 months. If more time is needed (up to three months from the day of the complaint) to investigate the complaint, the reason must be explained.
2. Contact the Financial Complaint Agency
If you are not satisfied with CIF's response, or if CIF has rejected the complaint and has not responded to the complaint within three months, the complainant had better complain to the financial grievance agency for compensation and mediation.
The Financial Ombudsman is an independent service that resolves disputes between CIFs and clients.
The Financial Grievance Body must be contacted within 4 months of receipt of the CIF's final response, otherwise the grievance body may not be able to process the complaint.
Financial Ombudsman Contact Information

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