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CySEC the Cyprus regulator. Licenses and authorizations CySEC
For anybody not a secret that with significant development and computerization of various financial markets, they have increased significantly, as every year there was an increase in new members. In such circumstances, there were numerous structures that have begun to provide their services in the stock market.
Formed a clear need for organizations that would regulate the activities of different firms that offer their services to all consumers. Today, there are a large number of regulators with different responsibilities, but we will talk about one of the most prominent financial regulators in Europe by the CySEC.
The Cyprus Commission for securities and Exchanges. The jurisdiction of this controller include coordination not only of Cypriot brokers and other organizations related to financial activities. Probably, many investors have at least heard about the existence of this structure.
The question of choosing a broker is very important for many investors, so the company has the relevant certificate from CySEC can become a significant factor in the final choice, sometimes even decisive.
The main occupation of the presented structure is the regulation of brokerage and investment organizations operating throughout Europe, but is registered in Cyprus. To all my challengers this controller gives the appropriate licenses that attest to the reliability of the company and acknowledge that the activities of the recipient of the document is controlled.
This Commission is fairly reputable and well known, many large brokers interact with her and undergo an annual verification from CySec. If the broker does not fulfill its obligations to consumers and leads them against unauthorized policy, the regulator reserves the right to impose sanctions against the violator. Penalties can be different, ranging from fines to a complete liquidation of the broker in identifying gross and systematic violations.
Obtaining a CySEC license
In fact, many people are interested in this issue, but it is not a simple answer. This is due to the fact that every regulatory organization has a different level of influence and authority. As for the CySec license, it to not so easy, and willing enough, because the regulator is European, and this is a certain level of prestige.
The main difficulty lies in the fact that the regulator put forward their candidates and to match them is not as easy as it seems. To begin with, that a potential bidder should conduct its activities on the market for at least three years.
In addition, the participant should be able to pay the initial membership fee and be prepared to pay an annual fee to support the activities of the regulator. As for the technical support broker, then it needs to have a quality and modern trading platform, to have a certain number of registered accounts and to be able to provide its clients with everything necessary for comfortable work.
Besides, there is one, perhaps the most important requirement, which the regulator CySec its applicants is mandatory the presence of representative offices in Cyprus. If the broker, through any reason is unwilling or unable to register a representative office there, membership in the Cyprus Commission for it will not be possible.
Annually, all participants are tested for compliance with, and in the presence of certain violations, the regulator fined a broker. Note that the fines are large enough, for example, for a minor violation, a regulatory Agency may fine the offender for 1000 Euro. In some cases, the Commission can resort to revocation of license and suspension of operations of the company.
Other regulators:
• CRFIN
• FMRRC
Obligations of Cypriot regulator
The mandate of this regulatory body is quite extensive, so it has certain obligations to its applicants:
• Control of activities of bodies providing services in the field of investment.
• Registration of licenses and their further distribution among the participants.
• Monitoring the activity of the foreign exchange market of Cyprus.
• Identification of violators of trade regulations and the continued application of the authorized measures against them.
• On organizations that have a direct relation to the sphere of markets and Finance.
Note that the controller copes well with its responsibilities and provides the full-fledged development of financial markets in Cyprus and across Europe.
Represented the organization for a long time carries out its responsibilities, protecting the rights of ordinary traders. A broker certificate from this structure is a direct guarantee that Your investment will be protected and no one can prevent You to start trading.
Some investors refuse to consider those brokers who have no license, however, the certificate should not be the only factor considered when choosing a company. The trader should clearly understand that the choice of the brokerage company is quite a complex issue which must be approached responsibly.
For a correct choice of the company must consider many issues, from technical support, ending with comments from other investors. Thus, the availability of a license from the CySEC is a huge advantage broker, but may not be the only important factor when choosing a broker.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 305
| Rating: 0.0/0 |
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