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Cyprus Securities and Exchange Commission

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					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) [1]

   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:[2]

   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.

				
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