CySEC conducted 850 audits, issued €2.76m in fines in 2024
The Cyprus Securities and Exchange Commission (CySEC) on Tuesday outlined its key regulatory actions and market oversight efforts during a press conference in Nicosia.
The commission’s presentation focused on legislative and technological developments shaping the capital markets in 2025.
The commission highlighted increasing institutional and regulatory requirements, digital transformation, and sustainable investing as critical factors affecting securities markets and investment funds both in Cyprus and across Europe.
Protecting investors and fostering a healthy market remain central to CySEC’s mission, with efforts directed at strengthening market stability and confidence in the financial services sector.
Theocharides stated that 2025 will bring significant regulatory changes through European directives and regulations, further strengthening the supervisory framework governing investment services.
Moreover, he highlighted that major regulatory updates are expected from initiatives such as the AML Package, the European Single Access Point (ESAP), the EU Sustainability Framework, AIFMD II, the Financial Data Access Regulation (FiDA), the MiFIR Review, EMIR Refit, and the Retail Investment Strategy.
Supervisory work and administrative fines
In 2024, CySEC conducted more than 850 on-site and remote thematic audits of supervised entities.
“These audits help ensure compliance with prudential supervision requirements and European Banking Authority guidelines while strengthening oversight of remuneration policies, internal risks, and business models,” Theocharides explained.
The commission also reviewed 510 annual reports from compliance officers and internal audits related to anti-money laundering (AML) compliance.
Additionally, CySEC monitored Cyprus investment firms, Administrative Service Providers, Managers of Collective Investment Funds, and Crypto Asset Service Providers.
The commission also audited 89 collective investment funds and assessed transaction and derivatives reporting requirements from 33 fund managers.
The Investigations and Market Surveillance Department completed 44 investigations in 2024, with another 52 ongoing by year-end.
“In cases of misleading promotional material, CySEC has intervened to ensure corrections,” Theocharides noted.
He added that where firms failed to comply, fines were issued.
Administrative fines imposed in 2024 totalled approximately €2.76 million, with €2.12 million levied against Cyprus investment firms for regulatory breaches.
Over the past three years, CySEC has issued fines amounting to €7.82 million, of which €6.3 million applied to investment firms.
“In 321 cases, supervised entities were instructed to take corrective measures, while over 70 entities were given specific timeframes to fully comply with AML regulations,” he stated.
Furthermore, seven investment firms had their operating licences revoked or suspended, while two Reserved Alternative Investment Funds also lost their licences.
Growth and digitalisation
The commission noted that the implementation of the Markets in Crypto-Assets Regulation (MiCA) was a key focus in 2024, setting new requirements for crypto-asset service providers.
“Several companies have already expressed interest in obtaining relevant licences from CySEC,” Theocharides confirmed.
Additionally, the Digital Operational Resilience Act (DORA) came into full effect in January 2025.
“This regulation establishes uniform requirements for financial sector cybersecurity, and CySEC will be gathering data from supervised entities regarding their cybersecurity measures,” he noted.
The sector continued to expand in 2024, with 80 new entities authorised, bringing the total number of supervised firms to 834.
However, one application for a Cyprus investment firm licence and four applications for crypto-asset services were rejected, while 13 applications (including three for Alternative Investment Fund Managers) were withdrawn.
Priorities for 2025
Theocharides stated that CySEC will continue strengthening cybersecurity and resilience in 2025 by acquiring new specialised systems to manage licensing processes and ongoing supervision.
He reiterated that investor education remains a focus.
The commission chairman said that CySEC participated in various international awareness campaigns in 2024, including Global Money Week and World Investor Week, promoting financial literacy.
“We are committed to advancing digital financial education and enhancing the use of digital financial products,” Theocharides said.
The commission also introduced an annual award for economics students at public and private universities, recognising two students from the European University of Cyprus in the 2023–2024 academic year.
“These efforts reflect our broader commitment to ensuring a transparent, robust, and investor-friendly financial market in Cyprus,” Theocharides concluded.
