CySEC Plans to Expand Supervisory and Regulatory Capabilities

CySEC has revealed its plans for strengthening its regulatory practices by implementing new and improved tools and technologies. The Cypriot watchdog, and one of the world's tope regulators, wishes to improve investor protection and smooth out market integrity at a time of great uncertainties and malicious market practices.

On February 1st, CySEC Chairman Dr George Theocharides spoke at a press conference about these developments. He revealed CySEC's major tools and strategies that will be used in bolstering the agency's effectiveness. He especially strives for the company to be able to identify suspicious practices as soon as they appear.

Dr Theocharides identifies the following innovative implementations:

• Big Data Management System that screens data in a timely fashion from a huge amount of trading activity and automatically detects irregular or risky behavior at a very early stage so that the agency can act on these before they develop  into full-blown issues.
• A specialized tech system that monitors social media and marketing activities online of all its regulated entities for a similar purpose as before.
• A Data Governance Framework (DGF) insuring a proactive response to issues by visualizing CySEC data problems by charts or alert systems.
• The Enterprise Risk Management Framework (‘ERM-F’) will allows the firm to assess risks from current, past, or future activities.

Moreover, CySEC is expanding its team of supervisors to ameliorate and increase productivity. 32 new staff members have joined since October of 2021, out of whom 15 have supervisory duties.

Numerous high-profile scandals developed over the last couple of years evolving big names, many of which are publicly-owned firms. The attached infamy that came as a result of their actions created a mass wave of doubt among investors and certain financial institutions as to the virtue and morality of these high-ranking institutions. CySEC is just one of the many regulators that are willing to set aside additional resources in order to tackle the issues of institutional corruption, and the acts of money laundering in general malpractices in big financial companies.