In a recent announcement, the Cyprus Securities and Exchange Commission (CySEC) shared its focus areas for 2024, aiming to guide and support regulated entities through evolving regulatory landscapes. As trusted advisors, FiveComply seeks to unpack these priorities for our valued clients, including Cyprus Investment Firms (CIFs) and asset managers, offering clarity and actionable insights.
CySEC’s goals for 2024 are centered on safeguarding market integrity and protecting investor interests. Shaped by ongoing market assessments and regulatory updates, these priorities serve as a compass for regulated entities, guiding them towards compliance excellence among changing regulatory dynamics.
Key Priorities Overview:
- Enhanced Supervision: CySEC underscores the importance of vigilant oversight, particularly for firms involved in cross-border activities with complex financial products like Contracts for Difference (CFDs). This heightened scrutiny aims to mitigate risks and ensure market stability.
- Promoting Compliance Culture: Cultivating a culture of compliance is essential. CySEC encourages firms to strengthen governance structures and control functions, fostering a sustainable approach to regulatory compliance.
- Proactive Risk Management: Timely identification and mitigation of risks are crucial. Regulated entities are urged to proactively address emerging threats, ensuring business resilience and investor protection.
Focus Areas for Regulated Entities:
- Investment Services: CIFs must adhere to professional conduct rules, enhance organizational arrangements, and embrace technological advancements. Additionally, robust governance frameworks and proactive risk management are emphasized.
- Asset Management: Asset managers should prioritize adherence to regulatory mandates, including sustainability requirements and effective asset valuation procedures. Thorough data analysis and oversight of derivative contracts are vital for maintaining financial stability.
Guidance for Regulated Entities: Regulated entities are encouraged to conduct comprehensive reviews of policies and procedures, aligning them with regulatory standards. Active engagement from management bodies and proactive measures to address emerging risks, including those in Information and Communications Technology (ICT), are recommended.
Next Steps: Regulated entities should anticipate ongoing collaboration with supervisory teams and take proactive steps to address identified areas for improvement. As CySEC continues to enforce regulatory standards, partnership and investment in compliance solutions are key to navigating regulatory complexities successfully.
About us: FiveComply is a trusted consultancy firm specializing in regulatory compliance and risk management solutions. With a commitment to empowering clients through tailored strategies and innovative tools, we stand ready to support our clients’ journey towards compliance excellence.