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 Abuse
One 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.