CySEC Wants Regulated Forex Firms to Assess Brexit Impact
By Daisy Joseph
The Cyprus Securities and Exchange Commission (CySEC) is a regulatory and authoritative body that provides the license for forex firms. The firms registered with CySEC could operate in several European countries including the UK. The UK’s decision to leave the European Union will have a major impact on the forex firms with European account operations. CySEC has sent out multiple letters to the regulated firms urging them to assess the business impacts of Brexit.
The regulated firms are instructed to assess the impact of Brexit and come up with remedial measures to continue to serve their customers. Previously, CySEC has been sending multiple circulars to the licensed firms regarding their business policy changes.
Cyprus Investment Firms (CIF) will have their services and activities affected by Brexit. To combat the changes, the companies are expected to adopt immediate remedial measures. The Cyprus regulated firms could lose EU license passporting, when they provide services to UK customers. These firms are dependent on the UK market and denying services is not an option.
The regulated firms are advised to send their assessment reports through the web portal before 28th April. The report should contain Brexit impact and the remedial measures taken by the firms.
Brexit is more likely to affect numerous forex firms that provide forex services in the European countries because obtaining USA license is extremely difficult. The Brexit negotiations may not allow a majority of these firms to continue its operations both in the UK and EU.
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