The Cyprus Securities and Exchange Commission (CySEC) is searching for experts specializing in identifying potential regulatory violations. The regulator has posted a new public tender, seeking two experts in the undertaking, valued at €240,000. This contract will span a considerable duration, with applications closing on January 31, 2024.
The advertised tender, titled "Provision of services by two experts to conduct investigations regarding potential violations of the current legislation by CIFs", marks a significant move by CySEC in enhancing oversight within the financial sector.
CySEC Unveils Extensive Probe of CIFs
The commission has defined the detailed schedule for qualified candidates, covering a period of 225 + 225 days for one expert and 112.5 + 112.5 days for the other. This extended duration underscores the depth and breadth of the investigations that CySEC has anticipated.
The category of CIFs mentioned by the regulator encompasses insurance services as well as banking and investment services. Invitations for participation will be sent out by the specified deadline, with the opportunity for seeking clarification available from January 15, 2024, at 13:00.
In July, CySEC announced a similar public tender, seeking an external expert to investigate potential breaches committed by CIFs. This tender was valued at €140,000, with the scope of services requested by the watchdog covering retail FX, CFD brokers, and crypto firms.
CySEC's focus on supervisory oversight has evolved over the years, with CIFs representing the largest group of entities under its purview. In 2022, there were 837 regulated entities under CySEC's supervision, Finance Magnates reported.
CySEC's Evolving Focus
As CySEC continues to expand its supervisory powers and conducts rigorous inspections, its pursuit of expert investigative services signals a dedicated effort to strengthen the integrity of the financial markets and regulatory compliance among CIFs.
Eleni Nicolaou from CySEC’s Department of Strategy, International Relations and Communications commented to Finance Magnates on the public tender posted in July: "CySEC is looking for an external expert to conduct investigations regarding possible violations of the existing legislation by Cypriot Investment Services Firms. This is part of CySEC’s effort to enhance its supervision with additional resources."
Recently, CySEC published its annual report for 2022, highlighting mixed performance for CIFs in Cyrus. This report disclosed a decline of 53% in the assets of CIFs due to geopolitical disruptions.
Despite this plunge, CIFs reported a substantial rise of 26% in client base, peaking at 4.1 million in 2022. This trend was attributed partly to market growth and a shift in post-Brexit client reporting standards.
