The Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC) announced today (Monday) that the Administrative Court has annulled a series of fines imposed on former Bank of Cyprus Public Company Ltd executives in 2014, citing a breach of impartiality in the original decision-making process.

Cyprus Court Overturns Multimillion-Euro Fines in Bank Scandal

The court's rulings, issued on June 14 and May 21, 2024, respectively, overturned administrative fines levied against 13 former Bank of Cyprus officials. These penalties were originally imposed following an investigation into the bank's investments in Greek Government Bonds (GGB).

The fines, dating back to April 28, 2014, were related to alleged violations of transparency requirements and public offer regulations. However, the Administrative Court found that these decisions “remained without basis” due to a prior ruling by the Supreme Constitutional Court.

In Appeal No. 99/2022, the Supreme Constitutional Court determined that CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term's 2014 decision was compromised by “a breach of the objective aspect of the principle of impartiality.” This breach stemmed from the participation of CySEC's Chairman in the decision-making process.

Among those affected by the annulment are prominent figures in Cyprus' financial sector. The court ultimately annulled the penalties imposed on 13 different individuals. Ten years ago, CySEC had imposed fines ranging from €80,000 to €350,000, collectively creating a multi-million euro package of financial penalties.

“An amount of €1,500 plus VAT shall be awarded in favor of the applicants and against the defendant in each of the actions,” stated the court's decision.

The Bank of Cyprus is a Cypriot financial services company founded in 1899 and headquartered in Strovolos. It should not be confused with the country's main monetary institution, the Central Bank of Cyprus.

In 2017, CySEC imposed a separate fine on the Bank of Cyprus, its former CFO, and ten of its directors, amounting to over €595,000 for accounting disclosure failures and other infringements. These administrative fines were levied after CySEC concluded its investigation into violations committed by the firm, its board members, and its former CFO due to negligence.

Recent CySEC’s Actions

Last week, CySEC launched its Regulatory Sandbox. The Regulatory Sandbox is now open for applications from those involved in FinTech and RegTech in Cyprus.

Also in July, CySEC announced the launch of a thematic review concerning the management of uninvested funds by Cyprus Investment Firms (CIFs) on behalf of clients. This review, referred to as “the Exercise,” aims to evaluate how CIFs handle these funds, including matters such as the payment of interest or returns.

In June, the regulator launched a consultation to gather market views on the proposed fees and reporting requirements under the Markets in Crypto-Assets Regulation (MiCA). This initiative invites stakeholders to give their opinions and influence the future framework, with responses due by July 17, 2024