How Cyprus, Germany, and Sweden Command 75% of EU's Cross-Border Retail Trading
- Cyprus is home to the highest number of investment companies in the EU.
- It also leads the pack when it comes to the number of clients by home member state.
The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) and National Competent Authorities (NCAs) recently completed an analysis of cross-border investment services in 2022. The study revealed a growing trend towards cross-border financial services, illuminating the benefits and challenges these services bring to consumers, firms, and regulators.
The study showed that Cyprus is currently the main hub for firms offering services to retail investors across the Old Continent. Companies licensed by the Cypriot Securities and Exchange Commission (CySEC) under ESMA regulations can reach clients from many other jurisdictions within the European Union (EU) and the European Economic Area (EEA).
ESMA Overviews Cross-Border Investment Services in 2022
ESMA and NCAs collected data across 29 jurisdictions, providing a comprehensive view of the market for retail investors receiving investment services from institutions outside their home country. Around 380 firms delivered services to retail clients on a cross-border basis, with 59% being investment firms and the remaining 41% being credit institutions.
In 2022, about 7.6 million clients in the EU were the beneficiaries of investment services from firms located in other member states. Cyprus emerged as the primary provider of cross-border investment services, housing 23% of all firms involved in such operations. Following Cyprus, Luxembourg and Germany accounted for 16% and 13% of all firms, respectively.
Firms in Cyprus, Germany, and Sweden served significantly more than 75% of EU retail clients receiving cross-border investment services. These firms reached out to millions of cross-border retail clients, with the remaining quarter of retail clients served by firms in other jurisdictions.
As for complaints, about 5,700 complaints related to cross-border investment services were recorded in 2022. The primary discontent areas revolved around contract terms, fees, charges and customer services.
ESMA has expressed its commitment to continue the data collection exercise annually, with plans to publish a report on the findings in 2024. According to the regulator, this will aid in maintaining transparency and ensuring the necessary regulations are in place to support the growing cross-border investment services sector.
The pan-European regulator also mentioned Cyprus and Germany in its report from last week. As suggested, local financial oversight commissions have made progress in improving their supervisory frameworks and conducting investigations.
CySEC’s Growing Importance as a Global Player
Finance Magnates conducted an exclusive interview this year with Dr George Theocharides, who has served as the Chairman of CySEC since 2021. The discussion covered the growing importance of Cyprus and CySEC as global players in the FX/CFD and financial regulatory market.
As Dr Theocharides noted, CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term currently regulates 840 entities, 32 of which have joined those bodies since October 2021. The regulator is currently hiring 42 new people to bolster its supervision departments. Finance Magnates reported last week that CySEC is seeking an investigation expert, among others, who would be responsible for detecting potential violations of regulations by investment companies registered in the country.
“There was substantial growth in the investment firm sector in Cyprus after 2013. We have reached a stable level of around 240 CIFs. The latest data was 247, at the end of 2022 it was 248, at the end of 2021 it was 243,” Dr Theocharides commented.
Furthermore, the Cypriot collective investment fund sector has seen healthy growth, with over 330 entities and an increase of 200% in managed assets since 2016. Currently, this sector manages nearly 10 billion euros, demonstrating significant growth potential and positioning Cyprus as a potential regional fund hub.
The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) and National Competent Authorities (NCAs) recently completed an analysis of cross-border investment services in 2022. The study revealed a growing trend towards cross-border financial services, illuminating the benefits and challenges these services bring to consumers, firms, and regulators.
The study showed that Cyprus is currently the main hub for firms offering services to retail investors across the Old Continent. Companies licensed by the Cypriot Securities and Exchange Commission (CySEC) under ESMA regulations can reach clients from many other jurisdictions within the European Union (EU) and the European Economic Area (EEA).
ESMA Overviews Cross-Border Investment Services in 2022
ESMA and NCAs collected data across 29 jurisdictions, providing a comprehensive view of the market for retail investors receiving investment services from institutions outside their home country. Around 380 firms delivered services to retail clients on a cross-border basis, with 59% being investment firms and the remaining 41% being credit institutions.
In 2022, about 7.6 million clients in the EU were the beneficiaries of investment services from firms located in other member states. Cyprus emerged as the primary provider of cross-border investment services, housing 23% of all firms involved in such operations. Following Cyprus, Luxembourg and Germany accounted for 16% and 13% of all firms, respectively.
Firms in Cyprus, Germany, and Sweden served significantly more than 75% of EU retail clients receiving cross-border investment services. These firms reached out to millions of cross-border retail clients, with the remaining quarter of retail clients served by firms in other jurisdictions.
As for complaints, about 5,700 complaints related to cross-border investment services were recorded in 2022. The primary discontent areas revolved around contract terms, fees, charges and customer services.
ESMA has expressed its commitment to continue the data collection exercise annually, with plans to publish a report on the findings in 2024. According to the regulator, this will aid in maintaining transparency and ensuring the necessary regulations are in place to support the growing cross-border investment services sector.
The pan-European regulator also mentioned Cyprus and Germany in its report from last week. As suggested, local financial oversight commissions have made progress in improving their supervisory frameworks and conducting investigations.
CySEC’s Growing Importance as a Global Player
Finance Magnates conducted an exclusive interview this year with Dr George Theocharides, who has served as the Chairman of CySEC since 2021. The discussion covered the growing importance of Cyprus and CySEC as global players in the FX/CFD and financial regulatory market.
As Dr Theocharides noted, CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term currently regulates 840 entities, 32 of which have joined those bodies since October 2021. The regulator is currently hiring 42 new people to bolster its supervision departments. Finance Magnates reported last week that CySEC is seeking an investigation expert, among others, who would be responsible for detecting potential violations of regulations by investment companies registered in the country.
“There was substantial growth in the investment firm sector in Cyprus after 2013. We have reached a stable level of around 240 CIFs. The latest data was 247, at the end of 2022 it was 248, at the end of 2021 it was 243,” Dr Theocharides commented.
Furthermore, the Cypriot collective investment fund sector has seen healthy growth, with over 330 entities and an increase of 200% in managed assets since 2016. Currently, this sector manages nearly 10 billion euros, demonstrating significant growth potential and positioning Cyprus as a potential regional fund hub.