License Regulations
Falcon Brokers Ltd. is incorporated in the Republic of Cyprus (Registration No HE266954) and is authorized and licensed, as an investment firm (License No 128/10) by Cyprus Securities and Exchange Commission (CySEC), the regulatory body that supervises and controls the operations of the Stock Exchange as well as the investment firms.
In its oversight, CySEC is empowered by the law (73(I)/2009) to impose administrative sanctions and disciplinary penalties to brokers and investment firms and even to revoke their operation licenses in the event they are not compliant with the provisions of the law (144(I)/2007) and CySEC directives.
Falcon Brokers Ltd also operates under “Markets in Financial Instruments Directives”, commonly known as MiFID, an EU law that provides harmonized regulations on financial services across EU member states.
The legislative and regulatory framework governing the operations of investment firms in Cyprus requires firms to act solely with the client’s investment goals and interest in mind free from any conflict of interest or fully disclose the conflict and receive specific consent from the client to so act.
- Sets out minimum regulatory capital on risk basis.
- Lays down supervisory review process meant to evaluate the firm’s processes for assessing overall capital adequacy.
- Focuses on transparency, disclosure of information, compliance with rules of fair and non-manipulative trading practices, risk control and internal management organization.
A host of legislative safeguards are in place addressing, among others, issues of market manipulation, insider trading and money laundering. Moreover, investment firms are required to establish a compliance department which, among other functions, oversees clients’ complaints and ensure a remedial action is taken and to participate in “the Investor Compensation Fund” which main purpose is to secure claims, not exceeding a certain amount, against the participating firm by a covered client for covered services.
The regulator’s website www.cysec.gov.cy maps out the regulatory environment in a comprehensive manner.
