CySEC Chair: 24option Ban in France Due to Two Sentences Advertising Text
- In an interview with the Cyprus Mail, the chairman of the CySEC elaborates on some recent developments

The Chairwoman of the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which 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.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions 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.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The 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. The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which 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.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions 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.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The 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. Read this Term), Demetra Kalogerou has shared with Cypriot newspaper Cyprus Mail that the ban of 24option in France has been over a marketing message that is two sentences long. The Autorité des Marchés Financiers (AMF) has classified the advertising practices of the binary options brokerage as sufficient ground to ban the firm from operating on the French market.
The CySEC has been on numerous occasions issuing circulars to advise firms about marketing messages that are not in adherence with the rules and regulations. Back in January the Cypriot regulator has fined 24option €156,000, but the French authorities have decided to take their own penalizing measures.
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Kalogerou highlighted in her interview that the French ban of the binary options brokerage is the first case when a Cyprus-based company is denied access to any of the European markets. She told the Cyprus Mail, “This decision was made over two sentences of promotional text on the company’s French website, which were deemed misleading, plus a single complaint out of some 10,000 clients.”
CySEC Should Get Worried
We are not aware what is the number of complaints in France that are related to single brokerages, however according to the AMF Ombudsman service report from 2015 a total of 194 complaints were registered against companies that are regulated by CySEC. The chairwoman of the CySEC should be rather worried that 85 per cent of complaints registered with the AMF ombudsman are associated with Cypriot firms.
It’s a challenging field that requires a lot of monitoring and oversight
The message by French authorities has been very clear - and if the CySEC doesn't do enough to strictly supervise its regulated entities other European markets could follow suit and eventually render the Cypriot license irrelevant.
Commenting on the matter, a CySEC spokesperson said, “Following the launch of the Supervisory Action Plan in mid-2015 into those forex and binary options trading firms identified as posing a high-to-medium risk to the investor, where material non-compliance has been found following close supervision and on-site inspection, over €2 million in fines and 11 license suspensions or outright withdrawals have been issued."
"CySEC’s message to both firms and investors is clear: those regulated firms looking to cheat the law have no place in Cyprus,” the spokesperson elaborated.
With a number of other regulatory destinations such as Estonia and Bulgaria making ground in recent months, CySEC has to step up its game in order to maintain its status.
Mrs Kalogerou did conclude the interview with Cyprus Mail by elaborating on the forex and binary options industry’s regulatory status, “It’s a challenging field that requires a lot of monitoring and oversight.”
The Chairwoman of the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which 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.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions 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.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The 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. The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which 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.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions 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.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The 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. Read this Term), Demetra Kalogerou has shared with Cypriot newspaper Cyprus Mail that the ban of 24option in France has been over a marketing message that is two sentences long. The Autorité des Marchés Financiers (AMF) has classified the advertising practices of the binary options brokerage as sufficient ground to ban the firm from operating on the French market.
The CySEC has been on numerous occasions issuing circulars to advise firms about marketing messages that are not in adherence with the rules and regulations. Back in January the Cypriot regulator has fined 24option €156,000, but the French authorities have decided to take their own penalizing measures.
Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!
Kalogerou highlighted in her interview that the French ban of the binary options brokerage is the first case when a Cyprus-based company is denied access to any of the European markets. She told the Cyprus Mail, “This decision was made over two sentences of promotional text on the company’s French website, which were deemed misleading, plus a single complaint out of some 10,000 clients.”
CySEC Should Get Worried
We are not aware what is the number of complaints in France that are related to single brokerages, however according to the AMF Ombudsman service report from 2015 a total of 194 complaints were registered against companies that are regulated by CySEC. The chairwoman of the CySEC should be rather worried that 85 per cent of complaints registered with the AMF ombudsman are associated with Cypriot firms.
It’s a challenging field that requires a lot of monitoring and oversight
The message by French authorities has been very clear - and if the CySEC doesn't do enough to strictly supervise its regulated entities other European markets could follow suit and eventually render the Cypriot license irrelevant.
Commenting on the matter, a CySEC spokesperson said, “Following the launch of the Supervisory Action Plan in mid-2015 into those forex and binary options trading firms identified as posing a high-to-medium risk to the investor, where material non-compliance has been found following close supervision and on-site inspection, over €2 million in fines and 11 license suspensions or outright withdrawals have been issued."
"CySEC’s message to both firms and investors is clear: those regulated firms looking to cheat the law have no place in Cyprus,” the spokesperson elaborated.
With a number of other regulatory destinations such as Estonia and Bulgaria making ground in recent months, CySEC has to step up its game in order to maintain its status.
Mrs Kalogerou did conclude the interview with Cyprus Mail by elaborating on the forex and binary options industry’s regulatory status, “It’s a challenging field that requires a lot of monitoring and oversight.”