CySEC recently published a Consultation Paper with its new outlines for the efforts the regulator puts in safeguarding clients’ investments held by Cyprus Investment Firms (CIF).
The Paper was published on Monday and according to it CySEC is obliging CIFS to instantly put received client funds into one or more accounts within a central bank, legit money market fund, third country bank, payment service providers, electronic funds institutions, or any other authorized credit institution(s). Apparently the companies regulated by CySEC were lagging in their duty to follow those procedures before.
If brokers or other CIFs cannot do so for any reason they need to give CySEC a clearly reason why that happened.
According to the same paper, CIFs need to audit the banks they use for the clients’ segregated accounts at least once a year.
Source
CySEC's reputation has not been stellar for a while now, even though it is a EU regulator, time will tell whether such measures will help with that.
The Paper was published on Monday and according to it CySEC is obliging CIFS to instantly put received client funds into one or more accounts within a central bank, legit money market fund, third country bank, payment service providers, electronic funds institutions, or any other authorized credit institution(s). Apparently the companies regulated by CySEC were lagging in their duty to follow those procedures before.
If brokers or other CIFs cannot do so for any reason they need to give CySEC a clearly reason why that happened.
According to the same paper, CIFs need to audit the banks they use for the clients’ segregated accounts at least once a year.
Source
CySEC's reputation has not been stellar for a while now, even though it is a EU regulator, time will tell whether such measures will help with that.
