The Cyprus Securities and Exchange Commission (CySEC) has released its annual report, revealing that it supervised 837 regulated entities at the end of 2022, which is a 3.9% increase compared to 2021. The report also disclosed that approximately 100 new applicants are currently being reviewed pending licensing, representing a 12% increase from 2019.
During 2022, a total of 86 applications for licenses were approved for all types of entities under the supervision of CySEC. CySEC rejected 6 applications for Cyprus Investment Firms (CIFs) licenses and a further 15 applications were withdrawn, including applications for CIF licences and collective investments.
Throughout the year, CySEC’s Supervision Department conducted various inspections and reviews on CIFs, including remote, thematic, and on-site reviews, as well as monitoring the requirements for reporting transactions and derivatives contracts.
The Department also monitored the requirements of Collective Investment Institutions and the online marketing practices of CIFs using its specialized system. CySEC imposed administrative fines totaling approximately €2.9 million in 2022, with the majority relating to CIFs.
The Chairman of CySEC, Dr George Theocharides, announced that the supervisory role will be expanded to include European Crowdfunding Service Providers (ECSPs) and Providers of Pan-European Personal Pension products (PEPP).
The regulator also plans a technological upgrade in 2023 and an increased focus on investor education, including the establishment of an annual award for two university students to promote financial literacy.
The Cypriot regulator said:
During 2023, CySEC will advance the processes for creating a control and management system for licensing applications. With the completion of the system, all applications for licensing of supervised entities will be submitted electronically, as well as any changes submitted periodically by the supervised entities, such as the members of their Board of Directors.
CySEC aims to enhance investors’ comprehension of market risks and boost their self-confidence in making investment decisions. A recent survey conducted by CySEC revealed that a significant number of investors rely on finfluencers and that some have invested more than they could afford to lose.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.