The Cypriot financial regulatory authority, the Cyprus Securities and Exchange Commission (CySEC), has issued a Cypriot Investment Firm (CIF) licenses to BIA Blueport Investment Advisors Ltd.,according to data published on Wednesday on the regulator’s website. The license allows the entity to provide financial and ancillary services in Cyprus and across all EU.
The company obtained the CIF license on 7 June, 2016, and has not been activated yet. Under the local regulatory framework, the CySEC grants a non-active CIF license that is later activated, but not before the licensee meets certain conditions. Licensees cannot operate until their license gets activated.
Financial service providers are not allowed to lawfully operate in Cyprus unless they hold a license by the CySEC or the relevant authorities in any other EU member state. A CySEC license, on its part, provides access to the EU markets.The CySEC provides two types of CIF licenses – limited, under which the financial company can execute orders on behalf of clients, but not on its own account, and full license, which allows an entity to act on both its own behalf and that of clients.
To obtain a CIF license, companies need to meet a number of requirements, which are sometimes more harsh than in other countries. They need to present an initial capital of a minimum €200,000 for limited license or €730,000 for full license.
CySEC regulation is preferred by many financial companies, forex and binary options brokers included. The watchdog exercises strict supervision over the markets in its jurisdiction, and has
The watchdog licenses, supervises, and regulates players on the local capital market. The CySEC’s managing board consists of five members, each one of which serves a term of five years.
Forex brokers with CIFs include FxPro, XM, FXTM, EXNESS, Hot Forex, and IronFX, among others. The latest entities to get a CySEC license are Avus Capital (aka Trading 212), G.S.E Golden Sky Europe Ltd., Spot Trading S.T. Ltd., Magic Compass Ltd., and Lydya Financial Ltd.
While the number of new CIF licensees is stable, many CySEC-regulated forex brokers are fleeting out of the country as a result of the increasingly tight regulation in Cyprus. Last week it became clear that multi-asset brokerage Glestimon Management Ltd. and forex broker Vinson Financials have renounced their licenses. What motivated the brokers to do so was not clear. Pegase Capital, forex and binary options broker trading as Interactive Options, also renounced its CIF license after nearly three months of license suspension, during which it was not allowed to provide services.
Meanwhile, the CySEC revoked the license of forex broker Falcon Brokers just a few months after it suspended it, and withdrew the license of binaries broker Trademarker, operating under the brands SkyFX and Capital Option.