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#1 31-07-2019 18:27:55

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2561
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CySEC reminds its brokers that they need to declare their subsidiaries

CySEC reminds its brokers that they need to declare their subsidiaries


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Forex brokers under CySEC supervision must now report on their subsidiary business activities.

Due to an increase in forex brokerages fleeing abroad, CySEC is keeping a watchful eye over the situation. The agency recently issued a note to the nation's financial companies reminding them about their obligation to report a number of details on the activities of any subsidiaries they may have abroad.

Foreign offices

Currently, the Cyprus Securities and Exchange Commission is therefore reminding local brokers that they have to declare any continuing operations they may have in other countries. And because the forex trading industry is quickly becoming a big deal outside of European territories, CySEC is now turning its attention to what is going on in the rest of the world.

Even though a few brokerages are still allowed to welcome Europe's traders, they are often using offshore offices to register these traders. 

As such, these brokerages are suggesting to their traders that they transfer their trading accounts to the brokers' offshore entities. Even though ESMA rules forbid this, a large number of brokerages are not adhering to these rules.

Branding

Even though no certain proof exists, the Cyprus Securities and Exchange Commission may want to make sure that brands made by EU-regulated subsidiaries don't welcome European traders with open arms. It's a well known fact that brokerages that have offshore subsidiaries never bother to create different branding for these entities.

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