CySEC Advises CIFs to Comply with New Czech Regulations
- Firms who provide services on 'a permanent basis' are now required to have a physical local presence in the Czech Republic.
The Cyprus Security and Exchange Commission today issued official notes addressing all the regulated financial firms in Cyprus. In a separate circular, the watchdog asked all Cyprus Investment Firms (CIFs) to comply with updated Czech regulations concerning the provision of investment services to locals.
According to 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 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 Read this Term, the Czech parliament today adopted an updated version of Act No. 256/2004 Coll., amending certain acts in the area of regulating cross-border services offered under MiFID II passport rights.
Among other things, the new regulation addresses the ability of investment firms authorised in other EEA member states to provide services in the Czech Republic, either on a cross-border basis or by establishing a branch in its territory.
While, in both cases, EU-regulated firms are still able to operate without having to be authorised separately by the Czech government, those who provide their services on 'a permanent basis' must have a local physical presence.
However, despite this seemingly rather strict approach of Czech authorities, other firms that serve retail clients and professional clients on 'a temporary or occasional basis' can still provide their products without establishing a branch.
The provision of investment services without proper authorization exposes investment firms to administrative or criminal proceedings, Cysec warns.
Spain Is Fed up with Cypriot Brokers
Overall, Cypriot CIFs need to notify CySEC when they are providing their services in third countries. Before they can deliver their product in a given country, they need to get appropriate authorisation from the country’s regulatory authorities first.
Today’s circular comes a few weeks after CySEC drew the attention of firms that provide investment services in Spain towards a recent statement released by its financial regulator.
Last year, the CNMV issued a circular that adopted an aggressive tone and threatened some European brokers that they could end up closing their activity in Spain, as the watchdog was fed up with their unfair practices. In essence, the guidance concerns companies that offer Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contracts for difference (CFDs) and other speculative products among retail investors in Spain.
At the time, the Spanish regulatory body said it mainly examines CFD brokers based in Cyprus, and that it has its sights set on those who use overly aggressive tactics and practices.
The Cyprus Security and Exchange Commission today issued official notes addressing all the regulated financial firms in Cyprus. In a separate circular, the watchdog asked all Cyprus Investment Firms (CIFs) to comply with updated Czech regulations concerning the provision of investment services to locals.
According to 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 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 Read this Term, the Czech parliament today adopted an updated version of Act No. 256/2004 Coll., amending certain acts in the area of regulating cross-border services offered under MiFID II passport rights.
Among other things, the new regulation addresses the ability of investment firms authorised in other EEA member states to provide services in the Czech Republic, either on a cross-border basis or by establishing a branch in its territory.
While, in both cases, EU-regulated firms are still able to operate without having to be authorised separately by the Czech government, those who provide their services on 'a permanent basis' must have a local physical presence.
However, despite this seemingly rather strict approach of Czech authorities, other firms that serve retail clients and professional clients on 'a temporary or occasional basis' can still provide their products without establishing a branch.
The provision of investment services without proper authorization exposes investment firms to administrative or criminal proceedings, Cysec warns.
Spain Is Fed up with Cypriot Brokers
Overall, Cypriot CIFs need to notify CySEC when they are providing their services in third countries. Before they can deliver their product in a given country, they need to get appropriate authorisation from the country’s regulatory authorities first.
Today’s circular comes a few weeks after CySEC drew the attention of firms that provide investment services in Spain towards a recent statement released by its financial regulator.
Last year, the CNMV issued a circular that adopted an aggressive tone and threatened some European brokers that they could end up closing their activity in Spain, as the watchdog was fed up with their unfair practices. In essence, the guidance concerns companies that offer Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contracts for difference (CFDs) and other speculative products among retail investors in Spain.
At the time, the Spanish regulatory body said it mainly examines CFD brokers based in Cyprus, and that it has its sights set on those who use overly aggressive tactics and practices.