The Cyprus Securities and Exchange Commission (CySEC), has officially adopted the existing guidelines of the European Securities and Markets Authority (ESMA), with regard to the appointment of new members or the assessment of existing personnel to the management body of specified entities.
The announcement specifies that the entities that must adhere to the newly adopted guidelines, include National Competent Authorities, Market Operators, and Data Reporting Services Providers (DRSP).
The existing guidelines also provide detailed instructions regarding the process of recording such information by the aforementioned entities.
CySEC’s announcement stresses the importance of recording and transferring the information properly, in order to allow for the regulatory bodies to conduct their supervisory roles appropriately and in the best possible manner.
The adoption of the ESMA rules in the matter, provide an aligned framework for the European continent, which will simplify processes for Market Operates and DSRPs alike.
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CySEC Steps Up
CySEC has recently stepped up its regulatory authority, implementing more stringent guidelines across for FX and CFD providers operating in Europe.
The most recent alteration made by the regulator that struck brokers by surprise was made earlier this month. The decision involved CySEC demanding that all brokers disclose the full list of countries in which they operate or offer services.
Moreover, it does not matter if the countries fall outside of CySEC’s jurisdiction, or even if those countries do not require regulation in any capacity.
If a broker would like to offer services in a non-European country, they will need to provide CySEC with proof of authorization from local authorities.
Brokers who have already received a CySEC license must adhere to the new regulations, or the regulator holds the right to issue fines, or even go as far as retract a broker’s license depending on the severity of regulatory violations.