Demetra Kalogerou, Chairwoman of the Cyprus Securities and Exchange Commission (CySEC ), has sent out an invitation to Cyprus Investment Firms dealing with Forex and binary options. The letter, seen by Finance Magnates, invites shareholders, senior executives and compliance officers to a meeting with the regulator in Nicosia.
Companies from the forex and the binary options industries have been summoned on the 4th of April to a conference room at the Bank of Cyprus. According to the letter, to be discussed are “the latest and future developments of the forex and binary options industries in the European Union”.
[gptAdvertisement]
Possible Reasons for Meeting
There may be several reasons for such a meeting, ranging from yet another batch of regulatory requirements to a new way of supervision. CySEC has been attempting to exert its authority on companies from the industry for some time.
The effort by the Cypriot regulator started late in 2015 as the watchdog imposed its first substantial fines against several binary options and forex brokerages.
Such meetings are customary and the CySEC's letter to brokers may be just a routine invitation to discuss the state of the industry.
The withdrawal issues of clients of some brokers continue to plague the reputation of the local industry and the credibility of the CySEC. This may be another reason for an industry-wide meeting, which could seek a resolution to the rise in the number of complaints against local firms made by a number of clients whose funds have been tied up for some time.
CySEC stresses in its letter that the meeting is with substantial importance and that companies are allowed to bring up to three persons to the meeting.
