Cyprus financial regulator CySEC has issued a note to all regulated entities on the island, asking them to report the effect of post-Brexit vote trading.
The note, signed by CySEC Chairman Demetra Kalogerou (pictured above), asks all CIF regulated entities to report the amount of their own funds, and their capital adequacy ratio to CySEC.
It appears as if CySEC wants to find out right away if there are any brokers out there with a ‘negative client balances’ problem, as happened to several brokers last year in the aftermath of the Swiss Franc spike.
The note sent out by CySEC reads as follows:
Effects due to brexit
Following the Circular C130, the Cyprus Securities and Exchange Commission (CySEC) requests the Cyprus Investment Firms (‘the CIFs’) to inform CySEC on the effects that Brexit has on their activities, including any contingent liabilities.
In addition, CIFs must calculate their own funds and capital adequacy ratio and inform CySEC accordingly. No need to submit the CRD returns, only the two figures above.
CIFs are kindly requested to submit the above by COB (close of business) today at the electronic address [email protected]
Chairman, Cyprus Securities and Exchange Commission