13 May, AtoZForex.com, Lagos — The Cyprus regulators, Cyprus Securities and Exchange Commission has updated its regulations as regards websites of Cypriot Investment Firms (CIFs). The new rules create a broader platform to fight against clone websites and many sorts of fraudulent schemes. All active web addresses of any CIF firm has to be registered with CySEC and such firms have to possess a unique address.
This makes it such that extreme similarities in web names are avoided, therefore making it more difficult for fraudulent firms to operate. The practice of cloning of broker sites and firm’s details has been on the rise lately. In addition to this new ruling on web name registrations, the consultation paper addresses issues regarding client agreements. CIFs are now required to appropriately and outrightly inform clients in due time about all of the terms and conditions of the agreements. They must also ensure that these terms and conditions are properly understood and agreed to, with evidence of this acceptance demonstrated to CySEC. Emphasis has to be placed on this aspect as CySEC updates rules.
Important excerpts from the paper
- In case an investment firm is not an owner of a domain name, it should make sure that has exclusive use over it.
- Companies that fail to inform the regulator about the addresses will effectively commit a violation of Articles 8 (disclosure of details) and 34 (changes in CIF information and details) of the Investment Services and Activities and Regulated Markets Law of 2007.
- The website address of each CIFs should be unique and should not be used by another company.
- An interesting remark: the regulator says the content of a website should not be different depending on the IP address of a visitor… It could be that this requirement will collide with certain geo-targeting practices.
About a month back, the regulator launched a new set of rules as regards guidelines for Cyprus Investment Firms (‘CIFs’), which offer trading benefits such as welcome bonus to clients. This created a shake of Cyprus brokers’ trading “benefits”. The regulator has continued to take steps in the right direction to cleanse the industry the in line with its primary responsibility. Recently, the regulators terminated the license of FxPulp over suspicions of violating the proper code of conduct of the regulator.
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