The Cyprus Securities and Exchange Commission imposed administrative penalties of €2.3 million in 2025 as a result of supervisory audits it conducted, CySEC President Giorgos Theocharides said at a press conference on Wednesday reviewing the Commission’s work for the year.
CySEC carried out approximately 600 on-site and remote audits of Cypriot Investment Firms and extensive audits of Fund Managers, Collective Investment Schemes, Issuers and Market Infrastructures.
According to Theocharides, supervision focused on professional conduct, sustainability risks, data quality, capital adequacy and compliance with the MiFID II, DORA and MiCA regulatory frameworks, as well as new challenges such as the promotion of investment products through finfluencers.
He noted that particular emphasis was given to preventing money laundering, with 43 thematic audits and enhanced monitoring of compliance with EU restrictive measures, especially regarding Russia.
The audits resulted in administrative penalties of €2.3 million, whilst over the last three years fines totalled €7.3 million. He clarified that fine revenues go to the state consolidated fund.
Beyond the administrative penalties imposed, Theocharides said that in over 170 cases corrective measures were requested, four licence revocations were carried out and five trading suspensions of securities on the Cyprus Stock Exchange were made. Two cases were also referred to the Police, five to the Attorney General and two to MOKAS.
CySEC also issued dozens of warnings to the investment public about unlicensed online entities and enhanced information campaigns and citizen protection from electronic fraud phenomena.
Despite the difficult economic environment, mainly due to external factors, the number of supervised entities recorded a 2.53% rise over the last five years (2020-2025), which according to Theocharides is “an indication that Cyprus continues to concentrate substantial advantages as an investment destination”.
Specifically, 47 new licences were approved in 2025. Of these, 26 operate in collective investments, 12 in investment services provision, eight in crypto-assets provision and one in administrative services provision.
At the end of 2025, the total number of supervised entities reached 808, whilst 61 applications are under evaluation for licensing. Assets under management in collective investment schemes reached €11.4 billion, “with a significant portion invested in the Cypriot economy”, he said.
The CySEC president highlighted the active role the Commission will play during Cyprus’s EU Council Presidency. Preparation for the Presidency was a key priority for the Commission in 2025, as more than 15 CySEC staff have assumed duties as experts on significant legislative files.
Specifically, CySEC is actively involved in the Market Infrastructure Package, the Retail Investment Strategy and the review of the Sustainability-Related Financial Disclosures (SFDR) framework.
CySEC has also undertaken the organisation of the meetings of the Board of Supervisors of the European Securities and Markets Authority and ESMA’s Supervisory Council in April 2026.
“CySEC approaches the Cypriot Presidency as another opportunity for substantial contribution to the European dialogue in shaping a modern, credible and resilient framework for the European Union’s capital markets,” Theocharides added.
CySEC’s contribution to financial literacy was also significant, Theocharides continued. In 2025, CySEC carried out campaigns in 44 schools across all districts, training more than 17,000 students. CySEC officials also participated in campaigns at universities, on social media, in television programmes and in international initiatives, “providing accurate information and practical advice to the investment public”.
The CySEC president said the Commission accelerated its digital transformation, investing in new IT systems, data analysis tools, artificial intelligence and cybersecurity, whilst he stressed that within 2026 a “substantial strengthening of human resources” is planned.
Asked about CySEC’s role in the privatisation of the Cyprus Stock Exchange, Theocharides noted this is a very important project. “I believe it’s something that was needed for quite some time to find a strategic investor who can develop the Stock Exchange,” he said, noting there is development in all CSE sectors. “Since we are a regional financial centre, it’s important to have a strong and stable stock exchange,” he said, expressing optimism about the process.
Regarding CySEC’s role in the process, Theocharides said: “We don’t have an active role in the strategic investor selection process, which runs from the government with the CSE Board. We support the process. Our role is to evaluate the strategic investor, as we do for any company getting a licence.”
In closing, Theocharides said the assumption of the EU Council Presidency in 2026, significant regulatory reforms at European level and the acceleration of digital transformation “make the next period particularly demanding. CySEC remains fully committed to its mission for investor protection, ensuring smooth market operation and supporting sustainable development of the investment sector”.
He stressed finally that accountability and transparency are key pillars of CySEC’s operation. “We commit to continue with the same responsibility and dedication in the coming years,” he said.