CySec informs CIF’s and set deadline to comply regarding their web address and Domain name 

The Cyprus Securities and Exchange Commission (CySec) has issued a circular to inform CIF’s regarding the website address they use, their Domain name and possible redirection of their clients to a website of another person.

Specific, CySec wishes to inform the cyprus Investment Firms(CIF) about:

A) Notification of website address

CIFs are required pursuant to Articles 8 (disclosure of details) and 34 (changes in CIF information and details) of the Investment Services and Activities and Regulated Markets Law of 2007, as in force (“the Law”) to notify all the addresses of their domains to CySEC.

It has been observed that certain CIFs have not notified all the addresses of their websites, through which they provide investment services, to CySEC.

For purposes of compliance with the above articles, all CIFs are requested to declare to CySEC all the addresses of their websites and CySec intends to register these addresses in the Public Register of Article 7 of the Law, in which all licensed CIFs are registered, and to post them on its own website, as well.

CySec states that the deadline for CIF’s to commply with above is September 25, 2015. Providing investment services through a domain whose address is not registered in the Public Register of Article 7 of the Law and not posted in the CySEC’s website, it will violates the provisions of the Law.

B) Domain name different from the name under which the CIF was granted authorisation

Visitors of a website must be informed on the name of the person that operate the website and provide investment services.

In cases where the domain name of a CIF differs from the name under which it obtained authorisation by CySEC, there is not explicit reference at the website of the CIF that the domain name is operated by it, or if there is such reference, it is not always visible, CySec required from CIF’s to establish and implement measures so that the visitors of their website are informed of their name so as there should be no misrepresentation on that, when establishing a business relationship.

C) Use of same domain name by other persons

Within the framework of compliance with Article 36 of the Law, CIFs must operate a domain name that is unique and not used by another person. Furthermore, the domain name must direct potential clients to a website, belonging exclusively to the CIF.

The CIF remains fully and unconditionally responsible for any misrepresentation thereupon in cases where CIFs have the same domain name (e.g. abc.com) with persons belonging to the same group with them, or with third parties which results that clients or potential clients of the CIFs do not know, or have the wrong impression, as to the name of the person with which they establish, or intend to establish, a business relationship, and as to whether this person is licensed / supervised by a competent authority.

Within the framework of compliance with Article 36 of the Law, CIFs must operate a domain name that is unique and not used by another person. Furthermore, the domain name must direct potential clients to a website, belonging exclusively to the CIF.

Where a CIF is not the owner of the domain name but concludes an agreement with the owner for its use, it must be ensured, under the Agreement, that it has its exclusive use. If this is not possible, then the CIF should not proceed to this agreement.
By way of derogation from point 3 above, CIFs, belonging to a group, may use the same domain name (e.g. abc.com) with other persons of the group provided that:

i. The potential client, when selecting/entering into the domain name, is directed to a page (e.g. abc.com/eu or abc.com/cy), or to a sub-domain (e.g. eu.abc.com or cy.abc.com), or to another domain (e.g. def.com), which it is operated exclusively by
the CIF.
ii. All the requirements of Part B above are applied to that specific page, sub-domain or
other domain.

D) Redirecting clients to a website of another person

A CIF cannot redirect potential clients to a website of another person for the provision of investment services unless:

i. The other person belongs to the same group with the CIF and it is licensed/supervised by a competent authority of a member state or third country in the provision of investment services.
ii. The CIF has not a license to provide investment services within the territories of the country of residence of the potential client.
iii. The potential clients are clearly informed and consent (e.g. client on the link) to this redirection.

Read full Circular here CIFs Notification of website address

Source: CySec

 

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