CySEC exacerbates licensing conditions and updates new bonus rules…
The Cyprus Securities and Exchange Commission (CySEC) was established after the accession of Cyprus to the European Union to control the National Bank and the financial system. A majority of the licensed CFD, Forex and Binary Options brokers have settled here. This is mainly due to the low tax rate. In addition, the CySEC was not as strict as the German regulatory authority BaFin.
Now out visit site the Cypriot financial supervision imposes stricter rules. For person continued instance, it can be seen from the press that, especially in the case of new companies, the licensing procedure is very closely watched. The concessions must be submitted directly to the authorities. All approvals are also published on the CySEC website.
However, prior to this publication, companies will receive a letter containing all the rules and obligations, which must be complied with before the business takes place. The conditions to be tested include:
- Existence of business premises
- Proper employment of employees
- Existence of legal / organizational structures for business activity
- Disclosure of Call Center Address
With these conditions, the Authority intends to prevent companies from settling on Cyprus only on paper and operating from a different location. The company is allowed browse around this site two to offer services only upon fulfillment of the conditions. If the duties are no longer respected by the companies, the authorization automatically expires.
Shortly after the introduction of these new conditions, it was also clear get more information come from the press that the CySEC has now also tightened the bonus rules. For this purpose, new guidelines were issued for the award of the trading bonuses, which mainly concern the sales specifications and the payment terms. It is also the form in which the credit notes are no you can check here declared and granted to the customer.
Many brokers usually offer substantial trading bonuses to create an incentive for new customers. However, these bonuses are always linked to specific usage conditions, which are not always read by the customers. If a customer requests the payment of a credit note, it is often the case that the conditions of use are not fulfilled. Here the CySEC criticizes the brokers that they deduct all losses exclusively from the deposit.
The CySEC now takes the brokers much more into the obligation with the new regulations and requires the customers to be better informed about the bonus rules. In particular, this is about the transparent presentation of the account content. It must be clear which amount can be paid they source out and what amount is still limited by a minimum turnover.
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In this context, it is also noticeable to the authorities that some brokers also have a time limit on the bonuses. This means that the minimum trading volume must be check this out than reached within a certain time frame. This makes traders massively under pressure.
It is therefore necessary to provide a detailed explanation, in which the customers learn how to pay out funds before reaching the minimum turnover. This is to be time discover more here done by means of simple examples on the respective broker’s website. It is important here that the declarations for customers – especially new customers – are comprehensible and easy to understand. In addition, customers are to give their explicit consent for the acceptance of a bonus if it is the will of the authority.