Introduction to the Cyprus Securities and Exchange Commission (CySEC)
The Cyprus Securities and Exchange Commission (CySEC) is an independent public supervisory authority established under Section 5 of the Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001.
As a public legal entity, CySEC was founded to regulate and oversee the investment services market, as well as transactions involving
transferable securities conducted within the Republic of Cyprus.
Key Responsibilities
CySEC’s primary role is to ensure the stability, integrity, and transparency of Cyprus’s financial and investment markets.
Its supervisory responsibilities extend to:
- Investment Services Market:
- Regulating investment firms to ensure compliance with established legal and operational standards.
- Transactions in Transferable Securities:
- Overseeing all activities related to the trading of securities, including stocks, bonds, and other financial instruments.
- Collective Investment Schemes:
- Supervising the operation and management of funds, such as UCITS and Alternative Investment Funds (AIFs).
Mission and Objectives
CySEC’s mission is to build a trustworthy and transparent financial environment that protects investors while supporting sustainable market growth.
Its key objectives include:
- Investor Protection: Ensuring the safety of investors by enforcing strict regulatory measures.
- Market Transparency: Promoting fair, transparent, and efficient markets.
- Regulatory Compliance: Ensuring financial institutions and investment firms adhere to Cyprus's legal and ethical standards.
- Market Development: Encouraging innovation and competitiveness in the financial sector to position Cyprus as a leading investment hub.
Scope and Significance
As a member of the European Securities and Markets Authority (ESMA), CySEC operates under European Union directives such as MiFID II (Markets in Financial Instruments Directive).
