The Cyprus Securities and Exchange commission (CySEC) has announced today that it was settling all the charges that were made on Prior Capital Cy Ltd, on the basis of payment of a fine of 100,000 pounds by the firm.
For long, the CySec had been viewed as a lenient regulator and so, firms that did not have enough capital to get a FSA certification or those that handled risky investments, generally chose Cyprus as their next destination as the regulator was lenient, it was a small country that was welcoming investments and new companies and it was also in Europe which was a good sales pitch for companies.
But not all tales that begin well, end well. So, there came a time a few years back when the CySEC woke up from its slumber and realised that there are too many companies in Cyprus engaged in financial services that werent serving its customers well. It also began to realise that the country was being used as a base for many financial scams.
This is not a…