CySEC: Regulator in Cyprus

Regulation of brokerage companies is so important for traders that without it it is almost impossible to talk about safe and honest trading of currency assets. That is why regulatory bodies play an essential role in the life of any stockbroker. The Cyprus Commission deserves special attention CySECThe country that is in charge of the control of securities transactions and stock exchange activities, because it is in this country, reminds fortrader.org magazine, due to the tax legislation, a large number of brokers.

Exchange Control of Cyprus - CySEC

• Full name: Cyprus Securities and Exchange Commission
• English title: Cyprus Securities and Exchange Commission
• Abbreviated title: CySEC
• Subordinate countries: Republic of Cyprus
• Level of trust of traders: average
• Official website: www.cysec.gov.cy

Since Cyprus is one of the most popular offshore zonesThe presence of tax incentives for service companies makes it not only attractive but also profitable to locate the main office on the island. And the presence of favorable tax conditions for companies engaged in the provision of services makes the placement of the main office on the island not only attractive, but also profitable. In any case, the possibility for brokers to operate in Cyprus exists only under the obligatory state regulation. This is ensured by the Commission CySECThe organization's mission is to supervise the activities of companies involved in currency and financial redistribution. Its mission is to control the activities of companies involved in currency and financial redistribution.

Since Cyprus is a full member of the EU, the powers of the CySEC similar to the European regulatory authorities, in particular FSA or MiFID. The organization constantly monitors the work of financial companies in terms of compliance with Cypriot and European legislation. Of course, its regulations also cover a range of operations on the stock market. If a violation of the law is detected, CySEC can apply various penalties, from fines to revocation of license documents.

Responsibilities and trust of traders

If we talk about the duties of the commission, the main ones are as follows:

• control over the activities of investment firms licensed to conduct financial operations;
• control over the implementation of activities of brokerage organizations and dealing centers;
• issuance of licenses for financial operations to investment companies;
• control over stock exchange operations within Cyprus;
• control over the activities of companies engaged in financial consulting;
• requesting, collecting, systematizing and analyzing information from other organizations necessary to monitor the activities of financial companies;
• application of penalties to organizations whose activities are found to be in violation of the legislation of the Republic of Cyprus and the EU.

License availability CySEC - is a very important factor of trust to the company. If the dealing center chosen by a trader has such a license, one can judge about its honesty and that financial operations are supervised by the main supervisory body of the advanced offshore zone, besides, it cooperates closely with the FSA, MiFID and other organizations of a similar level.