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CySEC Withdraws ICF Membership From Three Firms Amid Regulatory Clampdown

The Cyprus Securities and Exchange Commission (CySEC) announced a decisive regulatory action this week. In a significant enforcement move, the Investors Compensation Fund (ICF) has withdrawn its membership from three financial entities—BrightPool Ltd, VPR Safe Financial Group Ltd, and FIBO Markets Ltd. This step follows the recent CySEC decision to rescind their Cyprus Investment Firm authorizations.

Implications For Covered Clients

Despite the membership revocations, authorities have clarified that the rights of covered clients remain intact. Clients who had engaged in investment operations prior to the loss of membership will continue to be eligible for compensation, provided they meet the required conditions. The decision, therefore, does not impede the initiation of compensation procedures for impacted investors.

Looking Ahead

This regulatory action underscores CySEC’s commitment to maintaining robust market integrity and protecting investor interests. By enforcing strict compliance, the commission sets a precedent for financial accountability in the industry. Investors and market participants are advised to stay informed about ongoing developments as regulatory authorities continue to tighten oversight measures.

Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.

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