Binaryoptionswire.com is able to confirm that retail forex and CFD broker Plus500 is expected to very soon receive a license by CySEC, the financial regulator for Cyprus. Listed on the London Stock Exchange, Plus500 is a successful broker that is also already regulated by the FCA in the United Kingdom and by ASIC in Australia.
Upon receiving the news that Plus500 has applied for a CySEC license, binaryoptionswire.com enquired about this and was able to confirm by the regulatory consultancy firm MAP S. Platis, which has advised Plus500 in its application that the information is correct. Indeed, Alexandros Constantinou, Director at MAP S. Platis told us that “MAP S.Platis is indeed consulting Plus500 regarding its CySEC license application and looks forward to CySEC's announcement of the granting of its license in the next few days,” while he also revealed that “A number of applications are continuously in the pipeline.”
Indeed, an impressive 55% of all CIFs which obtained their licenses in the first six months of 2014 were in fact consulted by MAP S. Platis, which in real numbers translates to 5 out of the 9 CIF licenses granted during the said period. Moreover, overall, MAP S. Platis have successfully consulted over 85 firms or more than 55% of all companies that have ever received CIF status under MiFID in Cyprus. This fact is witness to the high level of support provided by the team at MAP S. Platis and justifies why they are regarded by many as the region’s largest and strongest financial services consulting team.
What is also interesting in this story is trying to discern the motives that compelled Plus500 to seek to obtain a CySEC license, since thanks to its FCA license it is already able to operate within the EEA, under MiFID.
It appears that Plus500 wanted a Cyprus licensed subsidiary in order to take advantage of the lower variable capital requirements and the cheaper overall reporting costs imposed by CySEC, when compared to the FCA. Moreover, this is perhaps not just a strategic move on behalf of Plus500 but also it could relate to the recent heat that the broker has been receiving by the FCA. It is reminded that just a few days ago, towards the end of September, the company’s stock fell considerably when the Times published an article saying that the Financial Conduct Authority was reviewing how Plus500 signs up new customers.
According to theTimes report, the FCA started the investigation after rivals of the AIM-listed provider of contracts for difference raised concerns about the process before the regulator.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.