Cyprus Securities and Exchange Commission (CySEC)
plans to strengthen its oversight of firms engaged in cross-border activities to
mitigate risks in complex financial products, such as Contracts for Difference
(CFDs).
According to the regulator’s supervisory priorities for 2024, CySEC aims to safeguard investors’ interests and maintain market
integrity by strengthening its supervisory framework. The strategy of the financial watchdog involves meticulous assessment of risks and obligations
faced by supervised institutions.
Another crucial aspect of CySEC‘s agenda involves
promoting a compliance-oriented culture within its registered entities. This
initiative seeks to instill sustainable compliance behavior, ensuring that
firms adhere to regulatory standards and ethical practices in their operations.
CySEC has emphasized the importance of proactively
addressing and managing potential adverse events to minimize their impact on
the financial ecosystem. By promptly responding to emerging challenges, the
regulatory body aims to maintain stability and resilience in the market to safeguard investors’ assets.
The regulator highlighted: “In 2024, CySEC ‘s primary area of focus includes assessing practices that may have negative impacts on investors and markets such as providing services in fractional shares, informing investors about costs and charges, communication through affiliates and influencers, implementation of sustainability requirements, application of pre-trade controls, and the use of copy trading.”
Within the investment services sector, CySEC’s
priorities include the implementation of effective organizational arrangements,
ensuring adherence to professional conduct rules, assessing practices with
potential negative impacts on investors and markets, and evaluating the
resilience of firms’ business models.
Εποπτικές προτεραιότητες για το 2024, με επικέντρωση στην εποπτεία ΚΕΠΕΥ με διασυνοριακές δραστηριότητες
GetFile.aspx (https://t.co/QlZoCwAwvY)
Supervisory priorities for 2024, targets CIFs providing services on a cross border basis
GetFile.aspx (https://t.co/QlZoCwAwvY)#CySEC— CySEC (@CySEC_official) March 27, 2024
Preparation for Regulatory Changes
Besides that, CySEC is preparing for upcoming
regulatory changes, including the implementation of the Digital Operational
Resilience Act and the Markets in Crypto-Assets Regulation. These
preparations highlight the regulatory’s commitment to adapting its supervisory
approach to the changes in the industry.
Additionally, CySEC aims to enhance oversight of data
pertaining to the exposure of investment funds to commercial real estate and
derivative contracts, thereby bolstering financial stability. CySEC employs a variety of supervisory tools,
including day-to-day monitoring, onsite inspections, offsite reviews, thematic
reviews, and supervisory meetings, to effectively assess and address risks.
Cyprus Securities and Exchange Commission (CySEC)
plans to strengthen its oversight of firms engaged in cross-border activities to
mitigate risks in complex financial products, such as Contracts for Difference
(CFDs).
According to the regulator’s supervisory priorities for 2024, CySEC aims to safeguard investors’ interests and maintain market
integrity by strengthening its supervisory framework. The strategy of the financial watchdog involves meticulous assessment of risks and obligations
faced by supervised institutions.
Another crucial aspect of CySEC‘s agenda involves
promoting a compliance-oriented culture within its registered entities. This
initiative seeks to instill sustainable compliance behavior, ensuring that
firms adhere to regulatory standards and ethical practices in their operations.
CySEC has emphasized the importance of proactively
addressing and managing potential adverse events to minimize their impact on
the financial ecosystem. By promptly responding to emerging challenges, the
regulatory body aims to maintain stability and resilience in the market to safeguard investors’ assets.
The regulator highlighted: “In 2024, CySEC ‘s primary area of focus includes assessing practices that may have negative impacts on investors and markets such as providing services in fractional shares, informing investors about costs and charges, communication through affiliates and influencers, implementation of sustainability requirements, application of pre-trade controls, and the use of copy trading.”
Within the investment services sector, CySEC’s
priorities include the implementation of effective organizational arrangements,
ensuring adherence to professional conduct rules, assessing practices with
potential negative impacts on investors and markets, and evaluating the
resilience of firms’ business models.
Εποπτικές προτεραιότητες για το 2024, με επικέντρωση στην εποπτεία ΚΕΠΕΥ με διασυνοριακές δραστηριότητες
GetFile.aspx (https://t.co/QlZoCwAwvY)
Supervisory priorities for 2024, targets CIFs providing services on a cross border basis
GetFile.aspx (https://t.co/QlZoCwAwvY)#CySEC— CySEC (@CySEC_official) March 27, 2024
Preparation for Regulatory Changes
Besides that, CySEC is preparing for upcoming
regulatory changes, including the implementation of the Digital Operational
Resilience Act and the Markets in Crypto-Assets Regulation. These
preparations highlight the regulatory’s commitment to adapting its supervisory
approach to the changes in the industry.
Additionally, CySEC aims to enhance oversight of data
pertaining to the exposure of investment funds to commercial real estate and
derivative contracts, thereby bolstering financial stability. CySEC employs a variety of supervisory tools,
including day-to-day monitoring, onsite inspections, offsite reviews, thematic
reviews, and supervisory meetings, to effectively assess and address risks.
