With Cyprus solidly positioned as a forex epicenter, its regulatory authority holds great deal of importance for the industry, and should be of interest to everyone in the global FX and binary option retail space.
In a special interview with Forex Magnates, Ms. Demetra Kalogerou, Head of the Cyprus Securities and Exchange Commission (CySEC), discusses the way she perceives the regulatory role, the efforts to restore the island’s credibility after the banking crisis and much more.
While other regulator are focusing on defending the local industry against global players, Ms. Kalogerou’s top priority is safeguarding investors. “This is the ultimate objective and it is the key determinant, our ‘compass’ if you will, for all of ouractions and decisions,” says the Head of the CySEC, which has recently tightened its reporting regime in accordance with European standard.
However, Ms. Kalogerou cites recent European measures as an indicator for a broader conception: “The Commission proposal on European long-term investment funds (ELTIF), shows that Europe contemplates the role of national regulators with regard not only in terms of investor protection, but also to growth through financing and the creation of new jobs.
Therefore, it is maybe more suitable to consider the role of national financial regulators in a more “holistic” manner, in which multiple objectives are pursued simultaneously and various policies and tools are subsequently developed.”
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Assessing the current state in Cyprus in light of the crisis, Ms. Kalogerou is convinced that the government’s action has helped restore credibility. “The vast majority of the entities supervised by the CySEC have expressed that they do not wish to withdraw their business from Cyprus,” she says, “Furthermore, they have voiced their willingness to work together with the authorities in alleviating any challenges affecting the operation of the market.”
As the leader of the Cypriot watchdog, another issue on the table for Ms. Kalogerou is social and copy trading, increasingly popular trading methods, both with an uncertain status. Regulators such as the FCA are still mulling whether these forms of trading should be considered a sort of investment advice or even portfolio management before implementing regulation.
It seems that in Cyprus too, the regulation authority still has not set a clear policy. “We will continue to monitor practice and collect information on social and copy trading which is necessary before market policies are formulated,” says Ms Kalogerou, who once more expressed her primary concern, namely, “Ensuring the protection of the investors.”
The full length interview can be read here.