Entities supervised by the Cyprus Securities and Exchange Commission (CySEC) have increased by 12% over the past four years, as reported by the Commission's Vice-President, Georgios Karatzias, at an informational seminar for journalists held on Tuesday.

Vice-President Karatzias presented an overview of CySEC's activities, followed by detailed presentations from the departments of Licensing, Issuers, Supervision, Research, and a segment on CySEC's efforts to contribute to financial literacy.

Karatzias stated that CySEC's goal is to establish the Cypriot capital market as one of the most reliable and attractive investment destinations. This is achieved through effective supervision that ensures investor protection and the healthy development of the capital market.

He noted that the number of supervised entities has increased to 837 from 746 in 2019, with about 90 new companies currently undergoing the licensing process.

Of these 837 entities, 252 are Cypriot Investment Services Firms (CISF), and 322 are Asset Management Companies and Collective Investment Organizations, managing assets exceeding €10.7 billion.

Karatzias also mentioned that CySEC's supervisory role has expanded to include Crowdfunding Service Providers. CySEC also supervises the Cyprus Stock Exchange (CSE) and its New Market, a Multilateral Trading Facility. Additionally, CySEC oversees 52 companies with listed titles on the CSE and 11 issuers of titles traded on foreign stock exchanges.

Furthermore, CySEC supervises 135 Administrative Service Providers and is the Competent Authority for Crypto Asset Service Providers, overseeing their compliance with anti-money laundering and counter-terrorist financing regulations.

Karatzias highlighted CySEC's Central Register of Trusts and mentioned that CySEC now also oversees Providers of Pan-European Pension Products and European Long-Term Investment Funds.

Focusing on preventive supervision, he mentioned CySEC's use of specialized systems to keep pace with the rapid digitization of the sector. CySEC invests in automating its processes through specialized systems, human resources, and new surveillance systems, enhancing its supervisory infrastructure's overall efficiency and effectiveness. A key acquisition is a specialized system for analyzing and monitoring online marketing content and social media activities of CISFs.

Regarding supervisory controls conducted by CySEC, Karatzias noted that in the last three years, administrative sanctions totaling €6 million have been imposed, of which €5.3 million were on CISFs, with €1 million in fines imposed on a single CISF.

He emphasized that penalties are not an end in themselves. The objective is the complete compliance of the supervised entities with their obligations under the regulatory framework. Besides monetary penalties, CySEC also takes other measures, such as potential personal liability of key individuals responsible for CISF non-compliance.

Karatzias also mentioned CySEC's promotion of financial literacy and awareness for investor education, issuing public warnings and participating in various campaigns to inform and protect the investment community.