Cyprus markets regulator is too slow to act, says EU watchdog

By Huw Jones

LONDON – Cyprus’ markets regulator was intervening too little or too late in tackling aggressive advertising behaviour by companies on its watch, the European Union’s securities watchdog stated in an unprecedented intervention on Thursday.

Cyprus has lengthy been a hub for Russian enterprise however extra just lately has attracted overseas trade and funding firms from different components of the world.

The European Securities and Markets Authority undertook a assessment of cross-border actions of funding companies in Cyprus, the Czech Republic, Germany, Luxembourg, Malta and the Netherlands.

The assessment’s conclusions singled out Cyprus, saying that a very giant variety of Cypriot companies pose a excessive danger of investor detriment, as a result of frequent provision of providers involving speculative merchandise, with aggressive advertising behaviour.

ESMA has issued suggestions to CySEC to enhance the way it authorises, supervises and enforces the bloc’s securities guidelines, the primary time it has taken such a step with a nationwide watchdog within the bloc.

CySEC’s supervisory actions have confirmed general inadequate at addressing the dangers posed by Cypriot companies’ cross-border providers resulting from an insufficient method to supervision and a scarcity of workers, ESMA‘s assessment stated.

“The general supervisory method by CySEC relies on interventions which seem too little and/or too late in comparison with the general quantity and kind of cross-border actions carried out by Cypriot companies and to the considerations raised by them,” ESMA stated.

In response, CySEC stated within the assessment that it has already taken decisive steps consistent with the suggestions, comparable to intensifying efforts to oversee cross-border companies, and rising workers by 28% over the past 18 months.

CySEC added on Thursday that the assessment covers two years to August 2020 and due to this fact doesn't absolutely replicate the numerous modifications which have taken place since then.