CySEC working to free client funds at Cyprus FX brokers
CySEC working to free client funds explained by professional Forex trading experts the “CySEC working to free client funds ” FX trading team.
CySEC working to free client funds
LeapRate Exclusive… LeapRate has learned that Cyprus’ financial regulator CySEC is working on behalf of licensed Cyprus investment firms, which include many FX and Binary brokers, to prevent the dreaded “haircut” on bank accounts holding segregated retail client funds at either Laiki Bank or the Bank of Cyprus.
The Central Bank of Cyprus has agreed not to apply the “haircut” to bank accounts over €100,000, where the ultimate owners of the cash in those accounts are individual investors, each with less than a €100,000 interest in those accounts. And this is certainly the situation at virtually all retail FX and Binary brokers — each trader typically has between €1,000-€25,000 in an account at any time, while the funds of all clients at a specific FX or Binary broker are typically held in one, large segregated account, which will have millions Euros in it at any point in time.
CySEC sent a circular out yesterday to its regulated firms (click here for a copy in English) pointing out that those firms with bank accounts potentially subject to the haircut should provide “supporting evidence for the ultimate beneficiaries so as to allow the release of the money…”
CySEC working to free client funds Conclusion
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