CySEC Responds to ESMA's Peer Review Report

The Cyprus Securities and Exchange Commission (CySEC) has reportedly issued a statement in response to the recommendations the European Securities and Markets Authority (ESMA) issued in its peer review report​ on the supervision of cross-border activities of investment firms.

"CySEC welcomes the Peer Review on NCA's supervision of cross-border activities of investment firms," the Cypriot watchdog said in the statement. "CySEC has long observed the shared risks these activities can present and has been at the forefront of developing specific policies and initiatives to ensure that investors across the EU are adequately protected, as well as drive innovation in the sector."

However, the regulator argued that the report is extremely valuable and useful, but "do not fully reflect CySEC's current status or the significant changes that have taken place" since August 2020, for the reviews that form its basis only cover the period August 2018 – August 2020. 

Also, CySEC highlighted in the statement that since the review, it has developed additional policies and initiatives to enhance the efficiency and effectiveness of supervision, and taken a bolder approach to tackling serious misconduct. To drive a sustainable culture of compliance, CySEC has significantly expanded its supervisory team, and invested heavily in new technology and data-driven systems that further enhance its ability to supervise the activities of regulated entities.

"In addition, CySEC has acquired a specialized system for monitoring supervised entities' online marketing activities that is able to identify and analyze relevant material from any source globally including social media channels, news sites, forums, blogs, video sites and ad networks, covering 187 languages. This allows CySEC to identify and address aggressive marketing practices and proactively identify intelligence on incoming/outgoing cross-border activities of firms," added the watchdog.