Cyprus leads the pack in cross-border investments activity within the EU/EEA region, with 20% of all firms operating in this space.
This is according to the latest report from the European Securities and Markets Authority (ESMA), which found that Cyprus, along with Luxembourg (15%) and Germany (14%), accounted for nearly half of all EU/EEA firms.
- The report, “Report on the 2023 Cross-border Provision of Investment Services to Retail Clients in the EU and EEA”, provides a comprehensive analysis of the cross-border provision of investment services in the EU/EEA. The report is based on data collected by ESMA and national competent authorities (NCAs) and aims to provide a detailed understanding of the state of play of cross-border investment services towards retail clients in the EU/EEA.
- The report highlights that Germany and Cyprus received the majority of complaints regarding cross-border investment services in 2023, with 35% and 24% respectively. This suggests that firms based in these countries may be facing more challenges in providing cross-border services.
- The report also found that there is a relatively high concentration of firms with cross-border investment activity in a few EU countries. For example, three countries – Cyprus, Luxembourg, and Germany – are home to about half of all EU/EEA firms, while four jurisdictions – Cyprus, Lithuania, Germany, and Ireland – are responsible for providing cross-border investment services to 76% of EU/EEA retail clients.
- In terms of firm numbers, the cross-border market for investment services in the EU/EEA grew by 1.6% compared to 2022, while the number of retail clients increased by 5%. The number of complaints, however, rose by 31%.
- The report also highlights that investment firms dominate the market for cross-border provision of investment services, making up 56% of all firms. Additionally, the four most important destinations for investment services account for 53% of the total number of retail clients, with Germany, France, Spain, and Italy being the top four destinations.
Overall, the report provides valuable insights into the state of cross-border investment services in the EU/EEA and highlights areas where regulators and firms can focus their attention to improve investor protection.
