CySEC Reminds Cyprus CIFs of Amended Forex Regulations in Poland
- Current laws allow Polish authorities to slap a fine of up to $1.26 million on firms operating in the country unlawfully.
In a circular to its regulated investment firms (CIFs), 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 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) drew the attention of firms that provide investment services in Poland towards the changes to Polish laws regarding firms that are allowed to operate in the country.
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Poland’s financial regulatory body, the Polish Financial Supervision Authority (KNF), recently announced another tranche of regulation reforms pertaining to investment firms offering brokerage services in the country’s 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 market. The modified provisions entered into force as of April 29, 2017.
According to the regulatory update, the only legitimate entities to operate brokerage activities will be KNF-authorised investment firms or an agent of such regulated entities, which is often a broker acting for and on behalf of the investment firm.
The KNF’s tightening also covers activities involving acquisition of retail clients, including information provided through marketing channels. The only exception allowing entities other than the approved operators to perform such activities is when the product information is offered to a broad group of prospective clients on an undefined basis.
The KNF said that it noted increased activity of unregulated affiliates residing in the country, who attracted customers to offshore forex brokers using aggressive marketing tactics.
According to the amended provisions of the act: “Whoever, without the required authorization or authorization contained in separate regulations or otherwise authorized by the law to operate in trade in financial instruments, is subject to a fine of up to PLN 5,000,000.”
Current laws allow Polish authorities to slap a similar fine on companies that are providing financial services in the country unlawfully, up to PLN 5 million ($1.26 million). The KNF is proposing doubling the maximum fine and criminalizing such activities.
In a circular to its regulated investment firms (CIFs), 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 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) drew the attention of firms that provide investment services in Poland towards the changes to Polish laws regarding firms that are allowed to operate in the country.
The London Summit 2017 is coming, get involved!
[gptAdvertisement]
Poland’s financial regulatory body, the Polish Financial Supervision Authority (KNF), recently announced another tranche of regulation reforms pertaining to investment firms offering brokerage services in the country’s 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 market. The modified provisions entered into force as of April 29, 2017.
According to the regulatory update, the only legitimate entities to operate brokerage activities will be KNF-authorised investment firms or an agent of such regulated entities, which is often a broker acting for and on behalf of the investment firm.
The KNF’s tightening also covers activities involving acquisition of retail clients, including information provided through marketing channels. The only exception allowing entities other than the approved operators to perform such activities is when the product information is offered to a broad group of prospective clients on an undefined basis.
The KNF said that it noted increased activity of unregulated affiliates residing in the country, who attracted customers to offshore forex brokers using aggressive marketing tactics.
According to the amended provisions of the act: “Whoever, without the required authorization or authorization contained in separate regulations or otherwise authorized by the law to operate in trade in financial instruments, is subject to a fine of up to PLN 5,000,000.”
Current laws allow Polish authorities to slap a similar fine on companies that are providing financial services in the country unlawfully, up to PLN 5 million ($1.26 million). The KNF is proposing doubling the maximum fine and criminalizing such activities.