Nicosia: Administrative fines totaling £2.3 million were imposed in 2025 by the Cyprus Securities and Exchange Commission (CySEC) as a result of its supervisory inspections, CySEC Chairman George Theocharides said at a press conference on Wednesday, presenting the Commission's annual review.
According to Cyprus News Agency, CySEC conducted approximately 600 on-site and off-site inspections of Cyprus Investment Firms (CIFs), as well as extensive reviews of asset managers and collective investment entities, issuers, and market infrastructures. Supervision focused on professional conduct, sustainability risks, data quality, capital adequacy, and compliance with the MiFID II, DORA, and MiCA, as well as emerging challenges such as the promotion of investment products through "finfluencers".
Special attention was given to preventing money laundering, with 43 thematic inspections and enhanced monitoring of compliance with EU restrictive measures, especially those related to Russia. As a result of these inspections, administrative fines amounting to £2.3 million were imposed, while over the past three years, total fines reached £7.3 million. Beyond the administrative sanctions imposed, corrective actions were requested in over 170 cases, four licenses were revoked, and five suspensions of securities trading were carried out on the Cyprus Stock Exchange (CSE). Additionally, two cases were referred to the Police, five to the Attorney General, and two to MOKAS (Cyprus Financial Intelligence Unit).
CySEC also issued numerous warnings to alert the investing public regarding unlicensed online entities and strengthened public awareness campaigns aimed at protecting citizens from digital fraud. CySEC's Chairman noted an increase of 2.53% in the number of supervised entities over the past five years (2020-2025), indicating that Cyprus continues to offer substantial advantages as an investment destination. Specifically, 47 new licenses were approved in 2025, with 26 in collective investments, 12 in the provision of investment services, 8 in crypto-asset services, and one in administrative services. At the end of 2025, the total number of supervised entities reached 808, while 61 license applications are under evaluation. Assets under management in collective investment schemes amounted to £11.4 billion.
The Chairman of the Commission highlighted the active role CySEC will play during Cyprus' Presidency of the Council of the EU. Preparation for the Presidency was a key priority for the Commission throughout 2025, with more than 15 CySEC staff members appointed as experts on important legislative proposals. CySEC is actively involved in the Market Infrastructure Package, the Retail Investment Strategy, and the revision of the Sustainable Finance Disclosure Regulation (SFDR). Additionally, CySEC is responsible for hosting the meetings of the ESMA Management Board and the ESMA Board of Supervisors in April 2026.
CySEC's involvement during Cyprus' Presidency is seen as an opportunity to contribute to the European dialogue, aiming to shape a modern, reliable, and resilient framework for the EU capital markets. Theocharides concluded by emphasizing the demanding period ahead due to Cyprus' assumption of the EU Presidency in 2026, significant regulatory reforms at the European level, and the acceleration of digital transformation. CySEC remains committed to its mission of protecting investors, ensuring the market's smooth functioning, and supporting the sustainable development of the investment sector. Accountability and transparency are core pillars of CySEC's operations, and the Commission is dedicated to maintaining these standards in the coming years.