The Cyprus Securities and Exchange Commission (CySEC) has welcomed the publication of the follow-up report by the European Securities and Markets Authority’s (ESMA) Peer Review Committee (PRC) on the 2022 peer review of the supervision of cross-border activities of investment firms.
As noted in a relevant CySEC announcement, "The new PRC report provides an update on the actions that several National Competent Authorities (NCAs), including CySEC, were requested to undertake following the 2022 peer review of the supervision of cross-border activities of investment firms. These actions covered, among other areas, authorisation, supervision, enforcement and cooperation with other NCAs."
It went on to note that, regarding the supervisory activities of NCAs, the PRC observed “clear progress” in integrating cross-border activities into risk-based supervisory frameworks. Among others, it highlighted CySEC for introducing regular, dedicated monitoring of cross-border activities and acknowledged the “improved cooperation arrangements” it has established. The PRC also welcomed the structural changes implemented by CySEC to closely monitor the timely handling of requests, as well as the improvements observed in practice. In addition, it described the strengthening of CySEC’s supervisory resources through the recruitment of an additional 32 staff members as “a significant achievement.”
The report concludes: “The PRC finds the increased supervision and enforcement path by CySEC since the peer review a constructive and encouraging development.”
Responding to the follow-up report, Dr George Theocharides, Chair of CySEC, said, “Today’s follow-up report to the 2022 peer review, and the tangible improvements it highlights, reflect the significant progress that has been 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 (CIFs) with cross-border activities.
As the ESMA report points out, all National Competent Authorities must remain vigilant to the risks arising from the continued growth and increasing complexity of cross-border investment services, further driven by ongoing digitalisation. Retail investors are gaining ever greater access to investment opportunities across the European Union and, as a result, investor protection remains at the heart of everything we do.”
Dr Theocharides added, “Having implemented the PRC’s recommendations, CySEC remains committed to building on the progress achieved. We will continue to closely supervise Cyprus Investment Firms to ensure a consistently high level of investor protection, while further strengthening our supervisory approach and cooperation with other National Competent Authorities.”
The full follow-up report on the Peer Review can be found on the ESMA website here.
