CySEC Warns CIFs Board Members

CySEC Warns CIFs Board Members

Time Stamp: October 23, 2023 10:07 AM
Source Node: 2951765

The
Cyprus Securities and Exchange Commission (CySEC) has issued a stern warning to
the Board Members of Cyprus Investment Firms (CIFs). The regulatory authority
called upon them to enhance performance and promote a culture of integrity and
high ethical standards. CySEC has already issued a series of warnings to the
industry, tightening supervision measures.

CySEC’s Expectations and the Regulatory
Environment

Dr.
George Theocharides, the Chairman of CySEC, emphasized the importance of complying
with the regulatory framework and ensuring the best interests of clients. He
stated that while Cyprus remains open for business, it welcomes only those who
uphold high regulatory standards, fostering a healthy, strong market with
innovations in financial technology.

Dr. Theocharides
made these remarks while setting out CySEC’s expectations and discussing the
current regulatory environment during online workshops for CIFs’ Board Members.
He emphasized the need for strong compliance culture in the face of
increasingly stringent regulations by the European Securities and Markets
Authority and CySEC.

Dr. Theocharides
further noted CySEC’s commitment to addressing misconduct by supervised
entities through intense supervision and continuous monitoring, ultimately
enhancing investor protection and market integrity. CySEC is determined to halt
non-compliant operations and strengthen compliance measures.

The
provision of cross-border services, particularly high-risk products to retail
clients, continues to raise significant investor protection concerns. The
rapidly evolving digitalization of financial services and the growing use of
social media to promote investments provide retail investors easy access to
products with diverse risk profiles, often not fully understood by all.

Interview with CySEC Chairman on Forex and CFDs Industry

Dr. Theocharides spoke with Finance Magnates earlier about the
evolving landscape of the forex and CFDs industry in Cyprus. Since assuming
his role in 2021, CySEC has strengthened regulatory oversight by imposing compliance
measures.

The commission views misconduct
seriously and has imposed substantial fines, totaling €5.3 million, over the
past three years. Dr. Theocharides highlighted the importance of consolidating
entities that struggle with compliance, driven by increased regulatory
requirements and a focus on investor protection.

The ultimate goal is responsible
growth in the investment sector. CySEC is also actively
promoting financial literacy and regulatory awareness campaigns to empower
investors. Summarizing his vision, Dr. Theocharides expects more consolidation
within the industry as stronger compliance cultures are essential to surviving
stringent regulatory environments.

The
Cyprus Securities and Exchange Commission (CySEC) has issued a stern warning to
the Board Members of Cyprus Investment Firms (CIFs). The regulatory authority
called upon them to enhance performance and promote a culture of integrity and
high ethical standards. CySEC has already issued a series of warnings to the
industry, tightening supervision measures.

CySEC’s Expectations and the Regulatory
Environment

Dr.
George Theocharides, the Chairman of CySEC, emphasized the importance of complying
with the regulatory framework and ensuring the best interests of clients. He
stated that while Cyprus remains open for business, it welcomes only those who
uphold high regulatory standards, fostering a healthy, strong market with
innovations in financial technology.

Dr. Theocharides
made these remarks while setting out CySEC’s expectations and discussing the
current regulatory environment during online workshops for CIFs’ Board Members.
He emphasized the need for strong compliance culture in the face of
increasingly stringent regulations by the European Securities and Markets
Authority and CySEC.

Dr. Theocharides
further noted CySEC’s commitment to addressing misconduct by supervised
entities through intense supervision and continuous monitoring, ultimately
enhancing investor protection and market integrity. CySEC is determined to halt
non-compliant operations and strengthen compliance measures.

The
provision of cross-border services, particularly high-risk products to retail
clients, continues to raise significant investor protection concerns. The
rapidly evolving digitalization of financial services and the growing use of
social media to promote investments provide retail investors easy access to
products with diverse risk profiles, often not fully understood by all.

Interview with CySEC Chairman on Forex and CFDs Industry

Dr. Theocharides spoke with Finance Magnates earlier about the
evolving landscape of the forex and CFDs industry in Cyprus. Since assuming
his role in 2021, CySEC has strengthened regulatory oversight by imposing compliance
measures.

The commission views misconduct
seriously and has imposed substantial fines, totaling €5.3 million, over the
past three years. Dr. Theocharides highlighted the importance of consolidating
entities that struggle with compliance, driven by increased regulatory
requirements and a focus on investor protection.

The ultimate goal is responsible
growth in the investment sector. CySEC is also actively
promoting financial literacy and regulatory awareness campaigns to empower
investors. Summarizing his vision, Dr. Theocharides expects more consolidation
within the industry as stronger compliance cultures are essential to surviving
stringent regulatory environments.

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