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#1 10-07-2017 10:51:41

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2085

CySEC: new circular issued on use of affiliate companies

CySEC: new circular issued on use of affiliate companies

The Cyprus Securities and Exchange Commission (CySEC) has issued a new circular that focuses on the use of affiliated companies. The text states that regulated investment firms (mainly forex, CFD and binary options brokers) are required to supervise their partners who target end users (traders).

Over the past two years, the CySEC has amended or even suspended the licenses of certain brokers, due to actions taken by "affiliated" third parties on behalf of brokers. Affiliates sometimes employ more aggressive marketing techniques than the brokers themselves. Some have said just about anything to attract clients.

According to the announcement, Cyprus investment firms (CIF) will need to ensure that their affiliate partners use appropriate marketing materials. In case of non-compliance, brokers must inform the CySEC, and provide the address of the affiliate's website and identity.

In addition to describing the rules governing the relationship between brokers and affiliates, CySEC has also declared its intention to post a list of affiliate websites on its website that do not comply with the regulations. The brokers will thus be informed of this professional misconduct and will have to cease and/or avoid any cooperation with these affiliates.

Arrow Click here to read the circular (PDF)

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