The Cyprus Securities and Exchange Commission
(CySEC) has released its Annual Statistical Bulletin for 2022, offering a
comprehensive overview of Cyprus’ financial landscape. Despite a global
economic slowdown, the report highlighted market resilience among regulated
entities (REs).
CySEC’s 2022 report disclosed a notable rise of 4%
in the number of REs under its supervision. This surge is a result of an
upswing in fund management companies and Cyprus Investment Firms (CIFs), while
the count of listed companies and administrative service providers (ASPs)
remained unchanged.
Between 2021 and 2022, there was a drop of 2% in the
number of CIFs. By the close of 2022, the cumulative number of CIFs stood at
225.
While the total number of CIFs declined
year-on-year, the number of clients surged by 26%, reaching 4,147,949 by the
end of 2022. This significant client increase is attributed partly to market
growth and partly to changes in client reporting post-Brexit.
CIFs emerged as a dominant force, boasting a
staggering 99% share of the client base in 2022. This marked a substantial
upswing from previous years. However, despite this substantial client growth,
CIFs faced a reduction of 53% in total assets.
According to the regulator, this trend is attributed
partly to geopolitical disruptions and currency fluctuations. Nonetheless,
amidst these challenges, CIFs saw an increase of 14% in trading income.
CIFs’ total assets reduced to €4.9 billion in 2022,
compared to €10.5 billion in 2021. The conflict in Ukraine reportedly played a
significant role due to imposed sanctions and reduced operational volumes.
Moreover, currency fluctuations, particularly the EUR/USD exchange rate deviation,
affected CIFs with assets denominated in USD, leading to substantial
fluctuations in their values.
Geopolitical Factors and Market Trends
The withdrawal of a considerable amount of CIFs’
assets denominated in Russian Rubles further contributed to the decline, as
firms aimed to minimize their exposure to this specific currency amidst market
uncertainties, CySEC noted in the report.
Interestingly, 23.4% of total investments were
directed toward Cyprus, predominantly channeled into Private Equity (70%) and
Real Estate (13%).
The local listed companies in Cyprus witnessed a
downturn, experiencing a downturn of 16% in numbers from 2019 to 2022. Despite
this decline, many of these companies traded in the Alternative Market, with a
notable presence in the financial services (27%) and travel and leisure (19%)
sectors.
The Cyprus Securities and Exchange Commission
(CySEC) has released its Annual Statistical Bulletin for 2022, offering a
comprehensive overview of Cyprus’ financial landscape. Despite a global
economic slowdown, the report highlighted market resilience among regulated
entities (REs).
CySEC’s 2022 report disclosed a notable rise of 4%
in the number of REs under its supervision. This surge is a result of an
upswing in fund management companies and Cyprus Investment Firms (CIFs), while
the count of listed companies and administrative service providers (ASPs)
remained unchanged.
Between 2021 and 2022, there was a drop of 2% in the
number of CIFs. By the close of 2022, the cumulative number of CIFs stood at
225.
While the total number of CIFs declined
year-on-year, the number of clients surged by 26%, reaching 4,147,949 by the
end of 2022. This significant client increase is attributed partly to market
growth and partly to changes in client reporting post-Brexit.
CIFs emerged as a dominant force, boasting a
staggering 99% share of the client base in 2022. This marked a substantial
upswing from previous years. However, despite this substantial client growth,
CIFs faced a reduction of 53% in total assets.
According to the regulator, this trend is attributed
partly to geopolitical disruptions and currency fluctuations. Nonetheless,
amidst these challenges, CIFs saw an increase of 14% in trading income.
CIFs’ total assets reduced to €4.9 billion in 2022,
compared to €10.5 billion in 2021. The conflict in Ukraine reportedly played a
significant role due to imposed sanctions and reduced operational volumes.
Moreover, currency fluctuations, particularly the EUR/USD exchange rate deviation,
affected CIFs with assets denominated in USD, leading to substantial
fluctuations in their values.
Geopolitical Factors and Market Trends
The withdrawal of a considerable amount of CIFs’
assets denominated in Russian Rubles further contributed to the decline, as
firms aimed to minimize their exposure to this specific currency amidst market
uncertainties, CySEC noted in the report.
Interestingly, 23.4% of total investments were
directed toward Cyprus, predominantly channeled into Private Equity (70%) and
Real Estate (13%).
The local listed companies in Cyprus witnessed a
downturn, experiencing a downturn of 16% in numbers from 2019 to 2022. Despite
this decline, many of these companies traded in the Alternative Market, with a
notable presence in the financial services (27%) and travel and leisure (19%)
sectors.
