The Cyprus Securities and Exchange Commission is an independent authority, responsible for supervising the financial markets in the Republic of Cyprus.
The Cyprus Securities and Exchange Commission (CySEC) is an independent public authority, responsible for supervising the investment services market and transactions in transferable securities executed in the Republic of Cyprus. The regulatory body’s headquarter is in Nicosia and consist out of a five-member Board; the Chair, the Vice Chair and the three remaining members. The Council of Ministers appoints the Board members, after the proposal of the Minister of Finance. Meanwhile, each board member’s service term is five years.
Cyprus Securities and Exchange Commission’s tasks
CySEC regulated brokers are eligible to make use of the MiFID ‘passport’. Hence, many brokers registered or attempted to register with CySEC to operate legally across the Eurozone. Coping with the surge of applications, CySEC’s responsibilities is to ensure a healthy development of the securities market in Cyprus. It reflects the mission statement of CySEC, as pictured below with CySEC chair Demetra Kalogerou.
In overall, the regulatory body oversees the operations of the Cyprus Stock Exchange and other financial markets. CySEC tasks consist of reviewing applications, providing licenses to entities under its supervision. Alongside, the regulator is eligible to suspend or revoke the licenses of the brokers.
What are Cyprus Investment Firms (CIFs)?
All firms in Cyprus that provide investment services need to be apply for a Cyprus Investment Firm (CIF) license from CySEC. The public can access through CySEC’s website the official register. There investors can see the up-to-date list with all the Cyprus Investment Firms. Currently, the number of Cyprus Investment Firms stands at a total of 219.
In case of malpractice of any of the Cyprus Investment Firms (CIFs), the local watchdog is authorized to impose the administrative and disciplinary sanctions, provided by the law. Other sanctions of the Cyprus Securities and Exchange Commission include ceasing of activities and the ban of financial advisors.