CySEC is warning CIFs trading in CFDs
The Cyprus Securities and Exchange Commission (CySEC) has issued an announcement on 21 July 2022 to inform about additional supervisory actions focusing on regulatory compliance and investor protection.
CySEC has warned Cyprus Investments Firms (CIFs) trading in contracts for difference (CFDs) that they must take immediate action to improve their practices, or they shall face enforcement action.
CySEC notes that is introducing additional controls for cross-border services, and that investor protection will be strengthened under new rules regarding how complaints are handled.
Furthermore, CYSEC is warning that it will impose “significantly higher” fines or proceed with suspending or revoking the respective CIF licence.
The warning came as the Chairman of Cyprus Securities and Exchange Commission (CySEC), Dr. George Theocharides presented CySEC’s supervisory objectives for 2022— 2023 at an online workshop for Cyprus investment firm executives, outlining the overarching emphasis on regulatory compliance and investor protection.
Under new rules, CySEC will compel firms that receive 20 or more complaints to appoint an internal auditor to undertake an investigation and submit a report.
Additional controls are also being introduced to examine the organisational structures of new applicants.
In addition, CySEC notes that is also focusing attention on applicants’ advertising campaigns, warning that it will not tolerate aggressive marketing behaviour or the provision of misleading information to investors, or any other abusive practices.
The full CySEC announcement can be found on the following link: https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=e14732d4-3140-4ce3-a99f-e16980127de2
