The Cyprus capital markets regulator said that regulatory reforms and new legislation to attract new investors to the island is proceeding very well, but other institutions are holding up the process.
Demetra Kalogirou, Chairman of the Cyprus Securities and Exchange Commission (CySEC) said that the framework for funds and managers are well underway and several bills have been submitted to parliament for approval. However, as regards legislation that involves other agencies and state bodies, these are being delayed and hampering our own work.
“Despite the problems and challenges facing the Cyprus economy, the sector which the Commission supervises continues to develop and as a result new applications from companies that wish to offer investment and administrative services are rising,” she said.
Kalogerou said that the CySEC had continued in 2014 to contribute to the common effort for Cyprus to exit the financial crisis and return to growth.
“The exercise of effective supervision is considered of paramount importance because it ensures not only the protection of investors but also the healthy development of the securities market,” she noted.
However, of the €9.4 mln in administrative fines imposed in 2013 and 2014, only €350,000 has been collected so far, obliging CySEC to appeal to the Attorney General’s office to proceed with criminal prosecution.
Pending cases concern possible misleading statements, evaluation of the data included in the financial statements of previous years, as well as practices which could constitute market manipulation, she explained.
Kalogerou said that CySEC carried out a public opinion poll last December with the aim of determining the level of public awareness about issues relating to the Commission.
“Although a large section of the population stated that they knew about the existence of the CySEC and had a positive view of its work, there is some confusion as to its roles and responsibilities,” she said.
The survey, conducted by Prime Consulting, found that 56% of the 1,162 questioned knew about the existence of the Commission, and of those, two thirds or 61% said that public relations and media awareness helped inform and educate investors. A further 57% said the CySEC’s work was important, 53% said the Commission helps in the better functioning of the financial sector, 56% believed it protected investors’ interests, and 50% believed it contributed to the development of the economy.
