CySEC issues affiliate new broker-affiliate guidelines
| By iGB Editorial Team
The Cyprus Securities and Exchange Commission has published a new circular aimed at making brokers increase the level of monitoring and supervision they exercise over their affiliates.
The Cyprus Securities and Exchange Commission (CySEC) has published a new circular aimed at making CySEC-licensed financial trading operators increase the level of monitoring and supervision they exercise over the affiliates they work with.
The directive’s objective is to strengthen the working practices of binary and CFD brokers and how their products are marketed to the public.
CySEC licences and regulates a large number of brokers and as part of the new guidelines, these brokers/operators (Cyprus investment firms, ‘CIFs’) will be required to:
- “exercise due skill, care and diligence when entering into, managing or terminating any arrangement with an affiliate”,
- “ensure that the affiliate has obtained any authorisation required or is registered in his jurisdiction to perform such activity, if required”,
- “ensure that the content of the marketing material is clear, fair and not misleading (…) and that the material either is prepared by the CIF itself and disseminated to Affiliates, or is subject to pre- approval and ongoing monitoring by the CIF, if a third party is engaging to do this”,