Things continue to heat up on the regulatory front as it was announced today that CySEC (The Cyprus Securities and Exchange Commission) has awarded CIF (Cyprus Investment Firm) status to four new Forex companies. The announcement was made through MAP S. Platis, the legal firm instructed by the four newly-regulated firms to act on their behalf.
The four new additions to CySEC’s CIF list are as follows:
Admiralex Ltd (CIF License No. 201/13). Admiralex is now regulated by the U.K’s FCA and Cyprus’s CySEC.
AVFX Trading Ltd (CIF License No. 204/13)
FXGlobe Ltd (CIF License No. 205/13). This company is registered in New Zealand as a provider of financial services but was not regulated anywhere else before receiving CySEC approval.
Prodigit Investments Ltd (CIF License no. 200/13)
CySEC has already been in the news this part few months with announcements of fines having been levied against firms that have infringed on their regulatory commitments (specifically TDOptions, Trading Point, and LQD Markets). These newly regulated firms are likely to be the first in a flurry since it was made clear by CySEC chairwoman Demetra Kalogirou at the recent iFXEXPO in Limassol that there are a total number of 36 pending applications awaiting an official ruling by CySEC officials.
Dr. Stelios Platis had the following to say regarding Cyprus’s position as a regulatory hub: “Whereas in other jurisdictions, FX brokers have to work around burdensome and restrictive rules on leverage, excessive capitalisation or expensive operating requirements, which restrict growth and consume valuable human and monetary resources, Cyprus’s FX brokers enjoy a stable and reasonable regulatory regime coupled with low operating costs.”
Indeed with so many companies stepping over each other to gain regulation in Cyprus, which is seen as a much cheaper and easier destination to gain regulation it seems that every cloud has a silver lining. Cyprus’s regulatory framework is proving to be a boon for the island that was only just saw its banking industry decimated in the wake of the Troika bailout this March.