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20 July, 2024
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Government now implements preemptive checks on companies

New rules set to enhance governance of administrative services


In a decision announced by Finance Minister Makis Keraunos on Tuesday, the Cabinet approved the establishment of a unified regulatory authority for companies offering administrative services.

Keraunos stated that with the approval of the authority, supervision over administrative service providers is enhanced. The responsibility will be delegated to the Securities and Exchange Commission, which, in coordination with relevant supervisors including the Bar Association and the Institute of Certified Public Accountants of Cyprus (ICPAC), will oversee these companies.

Additionally, he mentioned that supervision of all companies operating in the sector will be entrusted to the regulatory authority. Joint inspections will be conducted with the two relevant supervisors in cases where there is information or indications affecting the Republic's image.

According to the Minister, within this regulatory framework and with the Cabinet's decision, corporate governance of administrative service providers is strengthened by defining the qualifications of individuals providing these services, as well as the maximum number of companies they serve, as is the case in other EU countries.

"This decision ensures a unified and consistent, yet immediate and proactive response to cases where there is negative information or developments that threaten the reputation and image of the Republic," he stated.

Keraunos added that with today's decision, a cornerstone is laid for a structure that will protect the reputation of Cyprus and elevate the services provided under a unified, rigorous regulatory oversight.

Responding to inquiries, he mentioned that if, for example, there are announcements regarding sanctions violations, the mechanism will be able to inspect them. Additionally, preventive checks will be conducted "to act preventively."

He explained that after the approval, consultations will begin with stakeholders for specific mechanisms and criteria for supervision.

"If a sanctions violation is detected, fines, reprimands, and other measures to be determined by the bodies conducting the inspections will be imposed. Legislative regulation will be necessary for the matter," he announced.

Moreover, the Finance Minister stated that draft laws for the extension by one month of the fuel subsidy and the abolition of the 350-euro fee for businesses will be submitted to the House of Representatives in the coming days as urgent matters.

[With information sourced from CNA]

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