CySEC refutes ‘misleading’ claims of dwindling staff numbers in Forex companies

The Cyprus Securities and Exchange Commission (CySEC) released a statement this week refuting any suggestions that the investment sector is experiencing an employee number contraction.

This relates to publications in both print and digital media outlets, as well as on social media, alleging that CySEC has recently adopted a more heavy-handed approach, resulting in the closure or downsizing of investment firms and Forex companies in Cyprus.

“CySEC, in the context of its supervisory role and responsibilities, performs audits of entities under its supervision to ensure their compliance with the respective institutional framework that governs them,” the commission said in a statement.

“Where illegalities are detected, the commission shall take appropriate action and measures to protect investors’ interests and ensure the smooth operation and integrity of the market,” the statement added.

CySEC explained that it has the authority to issue fines and suspend the operations of investment companies that violate the relevant regulatory frameworks, adding that there is full transparency as to the decisions it takes since they are all available on the commission’s website.

CySEC said that it seeks to correct ‘wrong or misleading’ perceptions shaped by various publications on the number of employees working at investment companies in Cyprus.

To this end, the commission presented a set of data on staff numbers in the sector, showing an increase of 19.96 per cent in terms of employees between the end of 2019 and June of this year.

In more detail, the number of employees in investment firms was 4,914 by the end of 2019, 5,408 by the end of 2020, and 5,895 by the end of June 2021.

The commission added that the provision of investment services as a regular occupation or activity can only take place through investment companies that have been authorised by CySEC or another competent supervisory authority of another EU member state.

“Therefore, any entities presenting themselves to offer such services without having first obtained the relevant permission from CySEC or other competent supervisory authority of another EU Member State, which itself must also notify the commission that it has provided authorisation, violate the relevant legislation and are subject to administrative sanctions,” the commission stressed.

The commission also said that it maintains an online register of licenced investment service providers operating in the Republic of Cyprus, whether authorised by CySEC or other European Union supervisory authorities.

“CySEC urges the public to be very careful and to always check if the company with which it is in contact is licensed by the commission to provide investment services in Cyprus,” the commission said.