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Court Overturns €6.4 Million Fine in Insider Trading Dispute

by THEFUTURE.TEAM

July 8, 2025

Overview of the Landmark Decision

The Administrative Court has annulled a significant fine exceeding €6.4 million imposed by the Cyprus Securities and Exchange Commission (CySEC) on Greek siblings Ioannis and Amalia Vardinogiannis. The ruling concerns allegations of insider trading linked to strategic movements in the shipping sector and shareholding transactions in a listed company.

Key Transaction and Allegations

Central to the case was a transaction dated March 29, 2007, when Amalia Vardinogiannis acquired 19,358,487 shares at €0.09 each on the Cyprus Stock Exchange. The total outlay amounted to €1,742,264. On June 29, 2007, these shares were divested at €0.42 each, generating proceeds of €8,130,565 and yielding a profit of €6,388,301. CySEC contended that this profit indirectly benefited Ioannis Vardinogiannis, with Amalia acting as a proxy. The commission argued that the decision violated specific market conduct regulations against exploiting insider information.

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Investigation and Procedural Developments

Investigations into the matter began in November 2007 with the appointment of investigating officers by CySEC. A sequence of procedural challenges ensued following personnel changes and legal disputes regarding the constitution of CySEC’s board. Notably, a Supreme Court judgment in an unrelated case underscored procedural deficiencies that led to the withdrawal and subsequent readjustment of initial sanctions. By February 2013, the commission’s decisions were annulled due to concerns over the legal standing of its members.

Judicial Analysis and Conclusion

In its recent decision, the Administrative Court found that the objections raised by Ioannis and Amalia Vardinogiannis regarding the flawed constitution of CySEC’s decision-making body were sufficient to annul the fines imposed. The court emphasized, “They cannot, by invoking article 22 of Law 158(I)/1999, save the legality of previously adopted decisions, especially when a final ruling has already deemed the constitution deficient.” As a result, the decisions adopted during the defective session were declared unlawful and rescinded. Additionally, each appellant was awarded legal costs of €1,700 plus VAT.

Implications for Regulatory Oversight

This outcome not only clears the Vardinogiannis siblings of the administrative sanctions but also highlights the critical importance of proper regulatory governance and adherence to legal protocols. The case serves as a potent reminder for market regulators to maintain rigorous standards in the constitution and operation of their decision-making bodies to ensure the integrity of enforcement actions.

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Foreign Firms Contribute €3.5 Billion To Cyprus Economy In 2023

by THEFUTURE.TEAM

November 12, 2025

Recent Eurostat data reveals that Cyprus remains an outlier within the European Union, where foreign-controlled companies contribute minimally to the nation’s employment figures and economic output. While these enterprises have a substantial impact in other member states, in Cyprus they account for only 10 percent of all jobs, a figure comparable only to Italy and marginally higher than Greece’s 8 percent.

Employment Impact

The report highlights that foreign-controlled companies in Cyprus employ 32,119 individuals out of a total workforce that, across the EU, reaches 24,145,727. In contrast, countries such as Luxembourg boast a 45 percent job share in foreign-controlled firms, with Slovakia and the Czech Republic following closely at 28 percent.

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Economic Output Analysis

In terms of economic contribution, these enterprises generated a total value added of €3.5 billion in Cyprus, a small fraction compared to the overall EU total of €2.39 trillion. Notably, Ireland leads with 71 percent of its value added stemming from foreign-controlled firms, followed by Luxembourg at 61 percent and Slovakia at 50 percent. On the lower end, France, Italy, Greece, and Germany exhibit values below 20 percent.

Domestic Versus Foreign Ownership

The data underscores Cyprus’s heavy reliance on domestically controlled enterprises for both employment and economic output. However, it is important to note that certain businesses might be owned by foreign nationals who have established companies under Cypriot jurisdiction. As a result, these firms are classified as domestically controlled despite having foreign ownership or management components.

Conclusion

This analysis emphasizes the unique role that foreign-controlled enterprises play within the Cypriot economy. While their overall impact is limited compared to some EU counterparts, the presence of these companies continues to contribute significantly to the island’s economic landscape.