Cyprus Securities and Exchange Commission serves as the financial regulatory body in Cyprus. Being a member state of the European Union, CySEC aligns its financial regulations and operations with the European MiFID law, which promotes harmonisation in the financial sector. CySEC has attracted a significant number of overseas retail forex brokers who have sought registration with the commission.
It was also a preferred regulatory authority for numerous binary options brokers until 2018.
Licensing and Regulation
To ensure adherence to regulatory obligations, CySEC undertakes the licensing and continuous supervision of investment firms. Through diligent monitoring of these entities, CySEC guarantees their adherence to legal frameworks and the safeguarding of investor interests.
Supervision and Compliance
CySEC, the independent public supervisory authority, holds responsibility for overseeing the investment services market, transferable securities transactions within Cyprus, and the collective investment and asset management sector.
In addition, it supervises firms that provide administrative services, excluding those already under the supervision of the Institute of Certified Public Accountants of Cyprus (ICPAC) and the Cyprus Bar Association.
Conclusion
CySEC plays a crucial role in the overall Cypriot economy, and as a result, it exercises strict oversight, precision, and meticulous attention to detail. Companies under its supervision often face challenges in keeping up with rapidly evolving regulations and the regulator’s rigorous demands. However, CySEC’s ultimate responsibility is to protect the interests of investors, making them its primary commitment.
