CySEC regulatory organization
CySEC (Cyprus Securities and Exchange Commission) is a government financial regulator in Cyprus, referred to as "the Cyprus Commission for securities and stock exchanges". Cyprus is known for its offshore zone and simplified taxation, which attracts the most companies from all over the world, but in connection with the integration of Cyprus with the European Union took a more enhanced control and standardization documents in the field of Finance. As a result, in 2001, was created financial regulator CySEC. The government of Cyprus got a serious question how to maintain the attractiveness of the country for investors and to provide financial controls in accordance with EU legislation. In the end, the following decision was made: the Cyprus regulator CySEC has a strict policy of control over financial institutions in compliance with all regulations and instructions of the European Union but offers the smallest fines from 5 thousand euros for late reporting up to 2 million euros for financial fraud. But this does not mean that CySEC is looking at violations of "through my fingers", on the contrary, Cyprus, the Commission identifies the worst offenders that repeatedly allow the same type of violation, and pursues them in accordance with the law. This is confirmed by statistics for the year 2015, according to which the income CySEC fines amounted to almost 20 million euros.
Today CySEC supervises the entire financial system of Cyprus and offers a wide range of authority:
- issues licenses to financial market participants;
- supervises the activities of investment firms licensed by the CySEC;
- participates in the work of specialized agencies;
- controls the Cyprus stock exchange;
- investigating and preventing financial offences and crimes;
- impose disciplinary and administrative penalties;
- publishes normative legal acts and instructions; i>considers complaints from customers of companies licensed by the CySEC;
- conducts regular inspections of financial companies;
- revokes licenses when detecting violations of regulations or the law;
- interacts with other authorities, including judicial and law enforcement authorities of Cyprus and the EU.
To CySEC Commission, which investigates complaints of clients of the companies individually. The term of consideration of claims is usually not more than one month and the decision is purely objective. To send such complaint to any trader or investor who do not satisfy the actions of the broker. The amount of the claim is not important, can turn even the client invested 100 euros. If the violation is confirmed, then the broker will have not only to compensate for the loss of the trader but to pay a decent penalty CySEC. In spite of the rigidity of control, revocation of license is extremely rare and is associated with financial crime or money laundering.
Thus, the financial regulator CySEC in just a few years has grown from a local governing body in a full-fledged member of the European Union. If you see that the broker is licensed by CySEC, you can be confident in the reliability and honesty of a broker, as well as its compliance with international standards.