Several investment firms regulated by the Cyprus Securities and Exchange Commission (CySEC) have expressed serious concerns about the regulator’s current effectiveness. Industry representatives highlight issues such as lengthy investigations, inconsistent supervisory practices, and delays in decision-making, which are impacting firms' abilities to grow and operate efficiently.

Firms claim that the regulatory approach has shifted away from promoting Cyprus as an international financial center towards a more restrictive stance, often blocking new initiatives rather than supporting market development. This has led some large companies to consider scaling down operations in Cyprus or relocating functions to other European jurisdictions unless meaningful structural reforms are implemented.

The industry calls for clearer, evidence-based decision-making and stronger dialogue between CySEC and market players. There is also a demand for experienced leadership capable of balancing regulatory enforcement with business development to maintain Cyprus’ competitiveness within the European financial sector. Without these changes, many firms fear losing their foothold in Cyprus’s financial market.