CySEC Supervised 837 Entities and Imposed €2.9 million Fines in 2022

The Cyprus
Securities and Exchange Commission (<a href=”https://www.financemagnates.com/terms/c/cysec/” class=”terms__main-term” id=”37d97d82-59f8-4ce2-94d2-21c5bdc82663″ target=”_blank”>CySEC</a>) has summarized the previous year and
announced that it supervised 837 regulated entities at the end of 2022. In
addition, the regulator revealed that as part of its expanded supervisory
authority, it will oversee crowdfunding providers and personal pension
products.CySEC’s Year in a Review:
More Regulated Firms and More FinesAccording
to the CySEC yearly summary published on 15 March 2023, the Cypriot supervisor
is currently monitoring 837 companies, which translates to an increase of 3.9%
compared to 806 at the end of 2021. What is more, approximately 100 new
applicants are under review pending licensing, which is 12% higher than in 2019, prior to
the Covid-19 pandemic.”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withdrawn, including applications for CIF licences and collective investments,”
CySEC commented.Throughout 2022, CySEC’s Supervision Department conducted a variety of inspections on CIFs,
including 359 remote, thematic, and on-site reviews. In addition, the
Department monitored the implementation of requirements for reporting
transactions and derivatives contracts. Furthermore,
it conducted 119 remote document inspections and monitored the requirements of
Collective Investment Institutions. Lastly, the Department continued to monitor
the online marketing practices of CIFs using its specialized system, which
enables the collection and analysis of relevant information.In 2022,
CySEC imposed administrative fines totaling approximately €2.9 million, of
which the overwhelming majority related to penalties and settlements for CIFs.
In the past two years, CySEC imposed administrative fines of over €4.2 million,
of which over €3.6 million stemmed from CIFs. Over the past decade, the Cypriot
regulator has imposed settlements and fines reaching €34.2 million. Some of the largest financial fines were paid by Maxigrid Directors.Crowdfunding and Personal
Pension under CySEC’s ScrutinyDr George Theocharides,
the Chairman of CySEC, announced during a press conference that summarized the
regulator’s annual activities that the supervisory role will be expanded to two
new groups of companies, including European <a href=”https://www.financemagnates.com/terms/c/crowdfunding/” class=”terms__secondary-term” id=”123c62c4-dab0-4489-b3e1-9961cb08abb5″ target=”_blank”>Crowdfunding</a> Service Providers
(ECSPs) and the Providers of Pan-European Personal Pension products (PEPP).
ECPs and PEPP will be able to provide pan-European services from the Republic
under European laws.In
addition, CySEC plans a technological upgrade in 2023 and a higher emphasis on
investors’ education. ”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,” the regulator
added.Regarding education and training, CySEC wants to establish an annual award for
two university students to promote financial literacy in Cyprus, particularly
among youngsters. According to the latest press release, the supervisor wants
to offer a cash prize of €1000 each.In addition
to other benefits, education is anticipated to enhance investors’ comprehension
of market risks and bolster their self-assurance in making their own investment
choices. A recent survey conducted by CySEC indicated that one out of every
three investors <a href=”https://www.financemagnates.com/forex/cysec-finds-31-of-retail-investors-rely-on-finfluencers/” target=”_blank” rel=”follow”>relies on finfluencers</a> and their recommendations to make
investment decisions. Moreover, 26 percent of Cypriot investors had invested
more than they could afford to lose.