Regulators: Cyprus Securities and Exchange Commission CySEC

Regulators: Cyprus Securities and Exchange Commission CySEC

 The Prerequisite:   Before you complain to regulators 

Country: Republic of Cyprus
Country Common Nicknames: Cyprus, Cy
Big Bad Regulator, Long Name: Cyprus Securities and Exchange Commission
BBR, Short name: CySec
Type: Government
Main website homepage: https://www.cysec.gov.cy/en-GB/home/
Regulatory licenses issued: Multiple:  CIF [brokers, investment firms] , CIF domains names onlyCASP [Crypto] , Other license types
Complaints: Yes.  Regulated Firms, Unregulated firms, and Ombudsman complaints.  See further below.
Do they do alerts? Yes, occasionally:  CySec  |  EU IOSCO 
Do they ever eject a registered company? Yes.  See former investment firms
Do they ever fine a registered company? Hmmm….See Announcements
Do they ever directly or indirectly file criminal charges? Ha ha
Do they ever mandate repayments to clients? Mostly NO restitution powers on individual complaints. Cy Financial Ombudsman, which may offer some restitution.

So it appears we have CySec which issues licenses and guidance for the following major categories of investments:

    • Alternative Investment Fund  and Fund Managers
    • Asset Management Companies
    • Investment Firms (CIFs, includes forex brokers)
    • Undertakings Collective Investment in Transferable Securities (UCITS)
    • Cyprus Stock Exchange
    • Crypto Asset Services Providers (CASP)
    • Certain professional Administrative Personnel who assist businesses in one of these categories

CySec’s website is a bit tricky to navigate.  The site map appears well-organized at first glance, but when you actually start looking for straightforward explanations for how their investor protection schemes work, you’ll likely start scratching your head.  The video above and this reference article is a convenient shortcut.

Checking CIF’s status

Cyprus Investment Firms (CIFs) is where you want to look up to find your Cyprus forex/cfd broker.  CySec improved the search box feature a little, so you can type in their partial business name (the name they hold the license in), and check if they are listed.

You can also use the domain names list to quickly see all of the Cy licensed firm’s authorized web domains on 1 single page.  Then use your browser’s ‘Find’ option (ctrl + F) to find a broker’s name or website url.  This might actually be easier than using the CIF search box.

Complaints process:

 Make sure you’ve read  Before you complain to regulators  before continuing 

In short, you have CySec and Cy Financial Ombudsman.  Two different organizations.

CySec has absolutely zero restitution powers, except if the CIF has failed in some systemic way.  And CySec has made this very clear on several pages of their website. As far as retail client complaints are concerned, CySec is just a general “notify us if you see wrongdoing” complaints center, but at least it is free.  But you must follow these steps in order:

  • Complain formally to CIF directly.   They will assign some Unique Reference Number to your case within 5 days.  If you don’t receive the Unique Reference Number from the company, then you must insist on it.   You cannot complain to CySec or Cy Fin Ombudsman without this number.
    Companies have up to 2 months to respond in full to your complaint.
  • Contact Cy Financial Ombudsman.  If you are unsatisfied with the company’s response, or they have not responded at all within 3 months, you may complain to the Cy FO.
    You must contact Cy FO within 4 months after receiving final response from CIF, but not to exceed 15 months total from when you first became aware of complaint conditions.
    Cy Financial Ombudsman is where retail traders can complain about broker misbehavior and if the arbitration rules in your favor, you may get some funds back.   There is a non-refundable €20 fee before the complaint will be investigation.
  • Take the matter to court.   Good luck with that one.   Perhaps Mikov might be able to help?

You can still complain to CySec separately to inform them of the misbehavior and how it affects you.  There are 2 separate forms for those CIFs with CySec regulation and those without.

CySec appears to only consider restitution in extreme cases (like the firm goes bankrupt).   See I.C.F Investor Compensation Fund for details, or download the ICF directive (FPA backup).

Also note that their generic “contact us” form also states not to email complaints.  They will be ignored.   You may still choose to email them.  But at least use the appropriate contact form first.

____________________________________________

Make sure you’ve read Before you complain to regulators  before continuing

CIF company database lookup
Approved domain names
Formerly CIF (expired/withdrawn/cancelled)
Fake / scam domain names
CIF complaints form (CySec) https://www.cysec.gov.cy/en-GB/investor-protection/how-to-complain/  [Scroll down towards bottom]
No restitution; just verbal complaint.
NON-regulated entities reporting https://www.cysec.gov.cy/en-GB/investor-protection/non-regulated/
report imitation websites; scams posing as Cy regulated entity
CySec  Cy FO Announcement [22 October 2015] CySec link  |  FPA backup link

____________________________________________

Cy Financial Ombudsman (FO) website http://www.financialombudsman.gov.cy/
Cy FO  email complaints@financialombudsman.gov.cy
fin.ombudsman@financialombudsman.gov.cy
enquiries@financialombudsman.gov.cy
Cy FO complaint form1 for IndividualsOfficial page   |   FPA backup

for Legal Entities:  Official page  |    FPA backup

Cy FO Complaint directive / procedure Official page  |  FPA backup
1EUR €20 fee required before complaint will be investigated.  Payment instructions are contained in complaint form.  Required fee could be paid using money transfer services like Wise or Worldremit, which may reduce transfer cost significantly for international remittance.

____________________________________________

Contact email [generic] info@cysec.gov.cy , supervision@cysec.gov.cy
Contact form [generic] https://www.cysec.gov.cy/en-GB/cysec/contact/
Emailed complains are said to be ignored.   Regulator suggests using the proper complaint forms instead.

Noteworthy blog post

Now after all this time, CySec finally decides to publish an article on what to look for in scams.   A lot of the information will look similar to the patterns you see on FPA scam alerts.  But for those interested, here is their version of how to detect scams.

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4EverMaAT

4EverMaAT

4EverMaAT started trading derivatives since he was 18 years old, and found his way into forex over a decade ago and started developing automated trading systems to assist his leap into professional trading. This includes creating the worlds first (and only?) true coincident trend indicator: APAMI (Awesome/Amazing Price Action Measurement Indicator). No lag, no averaging. Just complex, measured price action made simple. Find out more at AwarenessForex.com.

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