In contrast, there is no real redress when it comes to financial advice. RDR has sought to raise standards in the UK, but the same is not true in Europe. A deficiency in the skill base among investment advisers in Cyprus has prompted the Cyprus Securities and Exchange Commission (CYSEC) to introduce “the award in investment planning” to identify knowledge in investment-based products in an attempt to stop bad practice on the island.
On 9 Nov 2012, CYSEC was appointed as the new authority for conducting financial services examinations.
Anyone offering investment advice or portfolio management services in or from the republic of Cyprus is required to pass these or equivalent exams. On 4 Dec 2012, the commission offered the process for tender and new exams are due in 2013.
The FSA in the UK is promoting change with RDR, which Europe is keen to follow. Those firms that do not have a MiFID licence will soon fall foul of the new rules being introduced across Europe by 2015. Cyprus is keen to improve standards with regard to financial services and investment advice. The Government is keen to embrace Europe further and implement a tightening of regulation.
This is clearly the way forward for Cyprus as it strives to improve the quality of investment advice by the end of 2013.
Tony Pentland is head of business development at 3D Global Financial Services in Cyprus.
