It seems the Cyprus Securities and Exchange Commission (CySEC) has been very active these last few weeks. In just a couple of days, the regulator announced it has granted license to several new forex brokers. The last one to obtains a Cypriot Investment Firm (CIF) license is CB Capital Business Ltd.
Not much information was immediately available about the newly-licensed entity, except that it was set up about a year ago. Its license was granted on 8 August, 2016, and is currently non-activated. Under the local regulatory framework, CIF licenses are issued non active, but are later activated after the licensee meets a number of additional regulatory requirements.
In Cyprus, financial service providers cannot do business without being authorized. They need to hold a license from the relevant authorities in the country or in any other EU member. On its part,a CIF license provides access to all countries in the European Economic Area (EEA). The Cypriot regulator provides two types of CIF licenses – limited, under which a licensee 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.
The CySEC has announced the licensing of 22 new CIFs in total since the beginning of the year and not all were necessarily forex or binary options brokers. Note that the regulator publishes this kind of information by a few weeks delay and the number of licensees might grow by the end of the year. Just in the past couple of days, the regulator said three forex brokers have been licensed as CIFs – Wonderinterest Trading Ltd., Fenix Capital Markets Trading Ltd., and IGM Forex Ltd.
We’ve also informed you about the CIF licenses of Avus Capital, doing business as Trading 212, G.S.E Golden Sky Europe, Spot Trading S.T., Magic Compass Ltd., Lydya Financial Ltd., BIA Blueport Investment Advisors, Rynat Trading, and TG Traderglobal.
Overall, it has been a very dynamic year for the forex market in Cyprus. The regulator has also been very active in imposing sanctions and fines to CIF licensees, as well as suspending and withdrawing licensees for noncompliance. Many entities have parted with their licensees, either at their own discretion or forced by the regulator.
The CySEC licenses, supervises, and regulates players on the local capital market. Its managing board consists of five members, each one of which serves a term of five years.