CySEC Demands Clarity Over Name Changes of Forex and Binary BrokersBy Adam | Wednesday, January 27th, 2016
The Cyprus Securities and Exchange Commission, one of the most popular financial regulator based in Cyprus which is the watchdog of many well known forex and binary brokers have issued a new regulation about the name changing of operators.
Their Circular released on the 26th of January 2016 states that some forex and binary options investment companies have been changing their trade names without having substantial reasons to do so.
The Cyprus Securities and Exchange Commission states that these changes can misinform and trick customers into believing something that the companies don’t really offer and therefore misinform investors.
The commission also says that name changes must be fully justified and clearly inform of the true nature of their business.
CySEC goes even further, saying that name changes should only happen in exceptional circumstances when there is a company merger or a take over and a new company name is therefore required.
It also states that from now on any financial entity the commission oversees will require to obtain their approval before any name change can be made.
In addition, CySEC insists that after a successful name change the previous company/trade name must be visible across all new branding for at least one year.
The commission also underlines that any financial entity which is currently being investigated by them or any other authority is not allowed to apply for a name change until the entire process is concluded.Published in News & Analysis