CySEC Is Strengthening Regulatory Role Through New Technologies and Tools

The Cyprus Securities and Exchange Commission (CySEC) announced that it is enhancing its supervisory capabilities through the use of new technologies and other tools, with the aim of ensuring a stronger investor protection framework and the smooth operation of the market. 

This was the focal point of CySEC Chairman Dr George Theocharides's peech delivered during a press conference on Tuesday, 1 February 2022, focusing on CySEC's goals for 2022 and the sector's trends and developments in 2021.

According to Dr Theocharides, CySEC has acquired a specialized technology system to monitor and supervise online marketing and social media activities of regulated entities. This tool will enable CySEC to enhance its ability to collect, analyze and monitor the marketing communications of CIFs. Furthermore, the regulator is expanding its supervisory team to increase the frequency and level of supervision. Since October 2021, a total of 32 new staff members have joined CySEC, of whom 15 have supervisory duties.

Dr Theocharides also said that CySEC has adopted Big Data management systems to quickly screen data from a huge and varied volume of trading activity to automatically detect risks and irregularities at an earlier stage and take proactive action against them. Moreover, the regulator is designing a Data Governance Framework (DGF) that will offer a comprehensive approach to managing CySEC data. This will enable the regulator to simplify procedures and ensure issues are proactively addressed with visualization/dashboards and alert systems.

Dr Theocharides also revealed that CySEC is currently developing its Enterprise Risk Management Framework ('ERM-F') to enable the watchdog to approach and assess risks that derive from older, current and future activities. The ongoing modernization of the regulatory framework of the securities market remains key on CySEC's list of priorities. New legislative developments are expected to take place in 2022.