The Cyprus Securities and Exchange Commission (CySEC) has received a significant boost with the European Securities and Markets Authority (ESMA) acknowledging its improved supervision of cross-border activities by investment firms.
Cysec: Progress in Regulatory Practices
The recent follow-up review by the ESMA Peer Review Committee (PRC) commended CySEC for its advancements in the supervision and enforcement of investment firms. This recognition is based on actions taken since a 2022 review, which focused on enhancing the regulatory framework surrounding cross-border investment operations.
Key Improvements Identified
The PRC report noted that CySEC has made strides in integrating cross-border activities into risk-based supervisory frameworks. The review highlighted several areas where CySEC has excelled, including:
- Regular monitoring of cross-border activities
- Improved cooperation with other supervisory bodies
- Structural changes for more efficient handling of requests
- Increased staff resources, with 32 new recruits
The PRC described these developments as “constructive and encouraging,” reflecting a marked improvement in CySEC’s approach to regulation.
Statements from Leadership
George Theocharides, chair of CySEC, expressed his satisfaction with the findings, stating that the report illustrates the progress made in reinforcing the regulatory framework for Cyprus Investment Firms (CIFs) involved in cross-border activities. He remarked, “The tangible improvements it highlights reflect the significant progress that has been achieved.”
Theocharides emphasised the necessity for ongoing vigilance among regulators, particularly as cross-border investment services expand and evolve, largely driven by digitalisation. He noted that “investor protection remains at the heart of everything we do,” highlighting the increasing access that retail investors have to investment opportunities across the European Union.
Future Directions
CySEC has committed to building on the momentum gained through the implementation of the PRC’s recommendations. Theocharides assured that the commission would maintain a close eye on Cyprus investment firms, ensuring high levels of investor protection while continuing to enhance its supervisory approaches and collaborations with other national authorities.
