Cyprus Regulator Launches Survey to Quantify Financial Sector’s Economic Impact

Nicosia – Cyprus’ financial regulator, CySEC, has launched a new economic impact survey aimed at measuring how the island’s regulated financial sector contributes to jobs, investment, and spending.

The survey, covering the 2025 financial year, requests all entities under CySEC supervision—including Cyprus Investment Firms, branches of foreign investment firms, fund managers, crypto asset service providers, administration firms, and listed companies—to complete a detailed online questionnaire.

According to CySEC, the survey seeks to measure three types of impact: direct, indirect, and induced. “Direct impact” refers to firms’ own revenues and costs; “indirect impact” comes through their suppliers; and “induced impact” reflects spending by staff and the staff of suppliers. The goal is to capture not only the turnover of FX and CFD brokers but also their local expenditures on technology, services, and wages, and how these funds flow back into the wider economy.

The move comes as Cyprus hosts a significant number of FX and CFD brokers that passport services across the European Economic Area. The survey gives these firms an opportunity to demonstrate that their operations support local employment, office space, and professional services beyond simply executing trades.

CySEC Chair Dr. George Theocharides highlighted the context for the survey, noting earlier this month that Cyprus’ capital market is entering a more stringent supervisory period. As of the second quarter of 2025, CySEC oversaw 319 collective investment management companies and undertakings, managing a combined total of €10.6 billion in assets.

The regulator has also indicated plans to increase the cost of regulated investment business on the island, proposing higher application and annual fees for Cyprus Investment Firms, foreign branches, and market operators, along with charges for material change notifications and algorithmic trading activities.

The survey results are expected to provide policymakers and the public with clearer insight into the economic role of Cyprus’ financial sector, which has long been a hub for FX, CFDs, funds, and crypto services.