Demetra Kalogirou, Chair of the Cyprus Securities and Exchange Commission (CySEC), spoke to Cypriot lawmakers in parliament earlier this week. The regulator’s chief highlighted that the budget dedicated by the government to the financial supervisor falls short.
CySEC’s budget for 2017 is close to €8.7 million ($9.3 million). The regulator, which is tasked to supervise 600 entities and has about 130 pending applications of new companies, has asked parliament for more funding.
According to official information, CySEC has increased its staff in 2016 by 48 percent to about 100 persons, with 30 persons hired on a contractual basis.
Kalogirou added in her statement to parliament that the European Securities and Markets Authority (ESMA) communicated to CySEC that it is understaffed to supervise the market in Cyprus.
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
Risks for the industry on the island have been apparent in recent years, with several brokerages getting fines for inappropriate market conduct.
The resources of regulators worldwide have been spread thin in recent decades. Cyprus is not an isolated case as the French AMF has recently also asked parliament for more funding.
Finance Magnates reached out to CySEC for a comment, but a spokesperson for a regulator declined to give any further information.
The Cypriot regulator is funded by its regulated entities and grants from the central government. Monies gained though fines and settlements reached with the watchdog are calculated as revenue for the Treasury of the Republic of Cyprus and not to CySEC.