Theocharides: CySEC's Supervisory Priorities for 2025 aim to protect investors and market integrity

The Cyprus Securities and Exchange Commission (CySEC) has announced its Supervisory Priorities for 2025, which address the requirement to adapt to emerging regulatory risks and challenges, while providing continuity through building on the progress achieved in 2024.

CySEC Chairman, Dr George Theocharides commented, “We are delighted to launch our Supervisory Priorities for 2025, which provide guidance for Regulated Entities as to the increasing measures they are expected to take in order to comply with evolving regulation as well as the need to address emerging market risks, such as the widespread adoption of AI and the rise of online promotion of financial product by fin-fluencers. CySEC remains firmly committed to safeguarding investors, ensuring market integrity, through fostering a culture of compliance among regulated entities and the effective implementation of its supervisory priorities.”

According to the Commission's announcement, CySEC will continue to focus on key areas such as the ongoing monitoring and thematic reviews of Regulated Entities and the strengthening of regulatory oversight. In addition, a heightened emphasis will be placed on the implementation of the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA), as well as new thematic initiatives to address emerging trends, such as the threats posed by the increasingly impact of Artificial Intelligence (AI) and financial influences (fin-fluencers).

CySEC will require Regulated Entities to:

• Review policies and procedures to ensure that internal policies align with CySEC’s priorities for 2025, including compliance with DORA and MiCA requirements.
• Enhance governance structures, risk management, compliance and internal audit frameworks to meet supervisory expectations.
• Prepare for thematic reviews by assessing their use of AI and fin-fluences, while fund managers should prepare for a thematic review on compliance and internal audit function.
• Focus on sustainability by ensuring that robust processes are in place for ESG compliance and appropriate disclosures are made.
• Invest in technology to improve ICT risk management and strengthen operational resilience.

In order to support regulated entities in achieving these objectives, CySEC will:

• Provide guidance: Issue circulars and technical documentation to clarify expectations for DORA, MiCA, and other regulatory requirements.
• Engage with stakeholders: Host workshops and webinars to address industry concerns and provide practical insights. Enhance communication with regulated entities to promote a culture of proactive compliance.
• Monitor Progress: Conduct interim reviews to assess the implementation of measures and provide feedback where necessary.

"CySEC is committed to safeguarding investors, ensuring market integrity, and fostering a culture of compliance among regulated entities. CySEC has outlined its supervisory priorities for 2025, and is committed to maintaining an open and constructive dialogue with all stakeholders, in order to ensure the effective implementation of its supervisory priorities," the announcement concluded.