CySEC

The Cyprus Securities and Exchange Commission (CySEC) represents the paramount financial regulatory authority of Cyprus.

This authority is a key regulatory of many retail forex brokers, providing the requisite licensing for many household names in the industry.

Overall, CySEC is one of the most important authorities for forex brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.

CySEC was founded back in 2001 and has since been instrumental in providing licensing and registration for forex brokers. Previously, CySEC was a primary player in overseeing binary options providers.

What Role Does CySEC Play in the Retail FX Industry?

CySEC is responsible for a wide range of functions, each of which help provide oversight for the retail industry.

This includes the supervision and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.

Moreover, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.

A critical part of CySEC’s functioning is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers.

This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.

CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.

All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term.