Cyprus regulator CySEC continues to get tough with weak brokers

Broker Discussion
1

The image in this Finance Magnates article caught my attention. It’s a Bloomberg image, and it appears to show a Cyprus flag that’s been dragged through the mud.

Is Bloomberg (or Finance Magnates) trying to say something in a coy fashion?

Cyprus flag dragged through the mud.png761×770 233 KB

Anyway, the article deals with the temporary suspension of a Cyprus forex broker for failing to maintain adequate capital reserves.

Cyprus brokers used to be essentially unregulated, and – as a “regulator” — CySEC was a joke.

No more. For some time now, CySEC has been cleaning up Cyprus forex.

Here’s the Finance Magnates article –

2

“Continues to get tough with weak brokers …”

Isn’t that called "Bullying " ?

Sounds as though it’s almost certain to provoke a “Run on the bank” - which is most likely to destabilise the balance sheet and push them into illiquid status - ie the last of those to apply will not get paid !

Piss poor “Regulation” methinks !

3

It’s a Getty image taken in 2012, used by FT and Bloomberg and others since then.

4

I think Cysec doing their job well. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law.

5

It’s MiFiD, MiFiD II and MiFiR now :slight_smile:
The CySEC regulated brokers now have to comply with all the EU regulations and that’s great.
It was about time to start taking out the rubbish.

1 Like
6

it’s certainly a step in a good direction, if so

up until now, being “Cyprus regulated” has meant about the same, on the client protection front, as not being regulated at all

7

I’ve made the point in several forums and threads that CySEC is no longer the “off-shore, shady brokerage/business” location as of the time when Cyprus joined the EU.
A lot of people don’t realize it.