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 only, CASP [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:
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- 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.
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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 Individuals: Official 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.
Author Profile
4EverMaAT
MaAT is an ancient Kemetic phrase that translates to "Truth, reciprocity, balance". Obviously when a company or trader tries to scam their client/business partner out of money, this upsets the natural balance that exists when contracts are formed and traded. But the best way forward is not to be a helpless victim, but to ensure that you are informed with whom you are trading with. And more importantly, whom you are trusting your hard earned dollars with.
4EverMaAT couldn't help but notice that the scams that most people fall for are very similar day by day, month over month, and year after year. MaAT believes that less people would fall for scams if only they took some more responsibility for their own trading choices. This ultimately means resisting one's own gambling impulse and gathering hard evidence (video, screenshot, trading history, etc) of all relevant trading activity. And consolidating this evidence so that it creates a clear, concise timeline of events. More details are related at upcoming blog RegulatedFool.com
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