The proposed circular which was issued this morning by the main overseer of the financial industry in Cyprus is outlining that major changes are needed when it comes to the practices of some companies.
The companies will be required to distribute a sales script to their employees that guides them about the regulatory framework. Employees of CIFs are going to be forbidden to do frequent or repeated telephone calls to clients and use aggressive language.
Brokers will have to make sure their staff are not employing pressure when speaking to a client, soliciting to deposit funds or investing or making certain trades. The watchdog has established a certification process which is in accordance with a directive issued by the regulator last year.
The companies are not limited on whether to provide their services from within their head office or from another European Union member country. CySEC will act on a case by case basis to assess what extra capital requirements brokers might need to maintain in order to comply with regulations. Share this article.