AGPLAW Attends CySEC Meeting | Regulatory Developments & Future Directions
Update Straight from CySEC: EU and Cyprus Regulatory Developments and Future Directions

We would like to share a few key insights from a recent strategic meeting with the chairman and vice chairman of the Cyprus Securities and Exchange Commission (CySEC), in which Angelos Paphitis, Managing Partner of AGPLAW, participated. This gathering offered an invaluable platform for dialogue and updates on the financial sector’s regulatory landscape.

  1. Stability and Growth in Cypriot CIFs: With around 250 Cyprus Investment Firms (CIFs) now operating, the market has matured significantly. The introduction of an effective supervisory plan over the past two years has enhanced market stability and compliance.
  2. Advancements in Fund Management: The funds sector is thriving with approximately €8.6 billion in assets under management. The recent passage of the 2nd AIFM Directive by the European Parliament allows greater flexibility, including the option for funds’ depository services to be located outside Cyprus. Additionally, fund administration will soon be a supervised activity, and the registration process for funds will be expedited dramatically, taking between 2 to 30 days.
  3. Crypto Regulation Updates: By the end of 2024, the introduction of the MICA license will revolutionize the regulation of crypto asset services, allowing firms the ability to passport their services across EU member states. This complements the existing CASP framework, providing more robust oversight and opportunities.
  4. Privatization of the Stock Exchange: The Cyprus Stock Exchange is entering a privatization phase, which is expected to enhance the efficiency of the capital market. This move awaits approval from the parliament, with an upcoming tender process planned.
  5. Regulatory Framework for ASPs and Fiduciaries: Discussions are ongoing about whether CySEC will become the single regulator for all Administrative Service Providers, including legal and accounting professions.
  6. Innovative Supervision with Suptech: CySEC is set to implement ‘Suptech’, a cutting-edge technology leveraging AI to transform regulatory tasks and supervision, marking a new era of innovation and efficient regulatory solutions.

During the meeting, Mr. Paphitis had the opportunity to direct questions of interest to the chairman and vice chairman, contributing to a deeper understanding of the forthcoming regulatory changes and their impact on the market.

Stay informed and prepared as CySEC enhances its regulatory framework to support the evolving needs of the financial sector.