The Cyprus Securities and Exchange Commission (CySEC) has outlined its supervisory priorities for 2024, indicating a heightened focus on Cypriot Investment Firms’ (CIFs) cross-border activities when dealing with complex financial products.
To access the full list of CySEC’s supervisory priorities for CIFs and asset managers, as well as guidance for regulated entities on ensuring compliance, visit (GetFile.aspx (cysec.gov.cy)).
Increased supervision of high and medium high-risk firms, with an emphasis on cross-border operations, is aimed at mitigating investor risks associated with the distribution of products like CFDs. CySEC is committed to fostering a culture of compliance among management and key staff members and proactively addressing any adverse events to minimize their impact.
CIFs should anticipate heightened scrutiny of their conduct rules, especially regarding information provided to potential clients, marketing materials, client onboarding procedures, and national regulations concerning the provision, distribution, and sale of CFDs. Companies must reevaluate how they offer services in fractional shares, disclose costs and charges to investors, communicate through affiliates and influencers, adhere to sustainability standards, and implement pre-trade controls to prevent potential harm to investors and markets.
