CySEC Reminds Investment Firms to Comply with Rules and Regulations in Spain

The Cyprus Securities and Exchange Commission (CySEC) has published a circular reminding Cyprus investment firms (CIFs) of the Spanish regulator CNMV's public statement regarding certain inappropriate practices in cross-border marketing of products and services by investment firms based in other EU countries.

According to the statement, bad practices followed by some non-Spanish EU investment firms include, but are not limited to, using aggressive marketing, tapping unauthorised third parties such as affiliates and call centres to conduct marketing activities and/or acquire new clients, and marketing activities on common websites in Spanish.

Another inappropriate, common practice the statement revealed is that the Spanish-language websites of many intermediaries from other EU countries which aims to market contract for difference (CFDs) and other complex instruments in Spain contain information or references of their related entities from third countries that are not permitted to operate in the EU.

The CNMV (National Securities Market Commission) has provided in the statement a series of guidelines for due compliance with applicable rules and regulations in Spain. CySEC urges all CIFs that operate in Spain to take appropriate actions and measures to ensure compliance with the content and requirements included in the CNMV's public statement.

The Cyprus regulator highlights that its supervisory assessments will incorporate the content of the CNMV's public statement.