An ESMA follow-up report highlights clear progress in CySEC's supervision of cross-border investment firms. CySEC welcomed the recognition, emphasizing its boosted enforcement, additional staffing, and commitment to protecting retail investors across European Union markets.

ESMA Report Highlights Progress in CySEC Supervision

A report by the European Securities and Markets Authority (ESMA) has found “clear progress” in the Cyprus Securities and Exchange Commission’s (CySEC) supervision of investment firms’ cross-border activities, acknowledging the strengthening of the Cypriot authority’s supervisory and enforcement actions. In a press release on Monday, CySEC welcomed the publication of the follow-up report by ESMA’s Peer Review Committee (PRC) on the 2022 peer review of the supervision of investment firms’ cross-border activities.

Key Supervisory Achievements and Resource Expansion

A CySEC announcement notes that the report outlines the action taken by national competent authorities, including CySEC, in areas such as authorisation, supervision, enforcement and cooperation with other authorities. The PRC found “clear progress” in integrating cross-border activities into risk-based supervisory frameworks and highlighted CySEC’s introduction of regular and dedicated monitoring of such activities, it is added.

It also acknowledged the “improved cooperation arrangements” established by CySEC and welcomed structural changes aimed at ensuring the timely handling of requests. The recruitment of an additional 32 staff members to strengthen CySEC’s supervisory resources was described as “a significant achievement” the announcement adds..

“The PRC finds the increased supervision and enforcement path by CySEC since the peer review a constructive and encouraging development,” the report said.

CySEC Leadership Emphasizes Investor Protection

CySEC Chair Dr George Theocharides said the report and the tangible improvements it highlighted reflected the significant progress achieved. “We welcome the PRC’s recognition of the strengthened framework that has been created in Cyprus to enhance the supervision of Cyprus Investment Firms with cross-border activities,” he said.

Theocharides added that national competent authorities must remain vigilant to risks arising from the continued growth, increasing complexity and digitalisation of cross-border investment services. As retail investors gain greater access to investment opportunities across the European Union, investor protection remains at the heart of CySEC’s actions, he noted.

Theocharides also said that, following the implementation of the PRC’s recommendations, CySEC would continue to closely supervise Cyprus Investment Firms, while further strengthening its supervisory approach and cooperation with other national competent authorities.

Source: CNA(ΚΥΠΕ)