Cyprus Securities and Exchange Commission Cyprus Securities and Exchange Commission Επιτροπή Κεφαλαιαγοράς Agency overview Formed 2001 Jurisdiction Republic of Cyprus Headquarters Nicosia, Cyprus Employees 42 (2009)  Agency executive Demetra Kalogirou, Chairman Website cysec.gov.cy The Cyprus Securities and Exchange Commission (Greek: Επιτροπή Κεφαλαιαγοράς), better known as CySEC, is the financial regulatory agency of the Republic of Cyprus. Since Cyprus became a member of the European Union in 2004, CySEC has become part of European MiFID regulation, giving firms registered in Cyprus access to all European markets. This has led to a number of overseas firms registering in Cyprus to take advantage of this regulatory regime. Notably is the significant number of overseas retail forex brokers that have obtained registration from CySEC as they generally see this as an easy way to get a license without having to meet stringent requirements that would be imposed by other European financial regulators, yet still qualify under MiFID and so completely free to operate in all European Union member countries. History CySEC was launched in 2001 as part of section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001 as a public corporate body. Cyprus joining the of the EU and adopting the Euro in 2004 significantly changed the financial regulatory framework that CySEC policed for what had been previously been considered a tax haven. A number of changes to legislation were made in conjunction with Cysec between 2007 and 2010 to upgrade the Cyprus financial regulatory framework and bring it in- line with EU recommendations. Responsibilities The Cyprus Securities and Exchange Commission has the following responsibilities: 1. To supervise and control the operation of the Cyprus Stock Exchange and the transactions carried out in the Stock Exchange, its listed companies, brokers and brokerage firms. 2. To supervise and control Licensed Investment Services Companies, Collective Investment Schemes, investment consultants and mutual fund management companies. 3. To grant operation licences to investment firms, including investment consultants, brokerage firms and brokers. 4. To impose administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to in any other legal or natural person whom fall under the provisions of the Stock Market legislation. Structure CySEC is administrated by a five member Board which is composed of the Chairman, the Vice-Chairman that are employed full time plus three other members. In addition of the Governor of the Central Bank of Cyprus is represented by a non voting board member. The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term.